Fund Management

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The use of Fund Management services is an efficient solution for gaining access to the European markets, through a fully compliant fund management company without the need for funds to establish their own fund management company.

Funds using this service benefit from the efficiencies provided by the existing structure in terms of sharing costs, middle and back-office operations.

A fund management platform can provide the following benefits:

  • Partnerships and better pricing with prime depositaries, leading auditors and legal consultants, and other leading professional services firms.
  • Fast authorization and set-up of a new structure.
  • Independent, stand-alone “identity” available for funds.
  • Specialized services required for servicing the specific investment policies of every sub-fund.
  • Outsourcing responsibility of the overall regulatory and compliance requirements of the funds, allowing the fund manager to focus on risk and portfolio management.
  • Qualification of the funds for EU passporting.

Risk Management

Risk Management is one of the two investment management services the Fund Manager must perform. This function is hierarchically and functionally separate from the portfolio management function, often achieving economies of scale and transfer of knowledge from the Fund Manager to the Board of the Fund.

Risk management services include the following:

  • Implementing effective risk management policies and procedures
  • Monitoring risk limits of investment portfolios as per risk management policies, procedures, and the regulatory frameworks.
  • Ensuring that the fund’s risk profile is consistent with risk limits set.
  • Suggesting risk mitigation measures, especially regarding liquidity and funding risks.
  • Performing sensitivity analysis and stress tests.
  • Management of leverage and exposures of the fund.
  • Preparing the Annual Risk Management Report.

Portfolio Management

HCM, through the expertise of its employees, supports the funds under management during investments and disinvestments. Any investment proposals are being reviewed by a dedicated ad-hoc investment committee which is appointed according to the investment objectives and strategy of each sub-fund and the decision is made by the fund manager following the non-binding investment recommendation of the committee.

Portfolio management services include:

  • Identification of prospective investments to be included in the fund’s investment portfolio
  • Ongoing monitoring of the investment portfolio
  • Ensuring the investment decisions are carried out in compliance with the investment objectives and strategy of the fund
  • Preparing an action plan to withdraw from an investment
  • Monitoring of the investment limits
  • Building and analyzing economic reports
  • Performing controls for the performance of the portfolio of the funds
  • Supervising, controlling and ensuring qualitative execution of the investments