As the world has become flatter due to the effects of globalization, investors have felt pressure to diversify beyond their domestic markets. Most financial firms met this demand by offering assets registered in multiple jurisdictions, however, this was usually only for non-discretionary programs.
Sponsors have recently been adding global capabilities to their managed account products as well such as multi-currency, F/X hedging and trading in foreign ordinaries. Along with these expanded offerings comes additional layers of complexity.
This article is a summary of a panel session from the Money Management Institute’s Fall Solutions Conference that was held in October 2013 in New York City. The discussion covered the benefits and challenges of expanding managed account programs to meet the needs of global investors. It also covered some of the latest developments in the highly specialized marketplace for Depository Receipts (DR’s), American Depository Receipts (ADR’s) and Global Depository Receipts (GDR’s) and the impact of fungible trading on the managed accounts space. Continue reading