By comparing the net flow rate with the real investment return, an institution can determine whether its LTIP is successfully sustaining its role in the institution’s business model The net flow rate is the regular LTIP payout rate plus reinvested operating surpluses, capital additions, and capital withdrawals. Over the long term, the real investment return…
In this Edition Regulators across the globe begin developing requirements for dark pools trading systems US regulators discourage highly leveraged transactions by banks OTC derivatives rules continue to roll out in the US and Europe FATCA’s debut means more paperwork for funds, investors, and financial institutions Come into the Light Dark pools get more scrutiny…
In This Edition Potential for regulation of systemically important players in the asset management industry An update on the Volcker Rule and bank holdings of CLOs Fragmentation in the global swaps market Regulations for private equity and hedge funds FATCA’s first deadline, and what’s to come Sometimes It’s Good Not To Be “Important” Large US…
Calendar year 2013 was an active year for financial regulatory developments as US regulators continued to work through the rulemaking requirements imposed on them by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). European regulators were also active, addressing many systemic issues during calendar year 2013. The year 2014 is setting up…
Although the rate of increase has remained relatively constant over the past six years, total student charges, which include tuition, fees, and room & board charges, continue to rise. Our annual compendium of student charges includes high-to-low rankings, annual percentage increases, a comparison of rates of increase to inflation, and an appendix providing a 20-year…
This survey-based report provides information on the general characteristics of clients’ outstanding debt, including tax status, interest rate type, sources used for debt service, credit enhancements, and plans for refinancing or new issuance.
The choice of investment vehicle can have unexpected but meaningful implications for the business of managing a portfolio, affecting audit and accounting processes, financing decisions, taxes, liquidity, and even investment performance. This report provides an overview of the basic U.S. laws and regulations governing investment advisers and investment funds, discusses investment vehicles available to U.S….
By centralizing capital funding and operating assets in an internal bank, institutions can decrease required cash balances, increase expected investment returns, better manage debt capacity, and direct funds to institutional priorities. This report reviews in detail the operating and capital functions of an internal bank, the rationale for setting up each type of bank, and…
This report provides commentary and exhibits based on a survey of our U.S.-based endowment clients on aspects of operations management, with a focus on six categories: finance office staffing; liquidity; debt; financial reporting and accounting; performance reporting; and regulatory, tax, and legal matters.
Governance of endowed institutions now requires the explicit recognition of new risks, and trustees must be aware of important changes in legislative guidelines pertaining to investing and spending, in governance disclosures required by the IRS, and even in the very definition of endowment.