Minority of Infrastructure and Real Estate Fund Managers Believe AIFMD Has Positive Impact
Only a small proportion of fund managers active in infrastructure and real estate think that AIFMD regulations will have a positive impact on their firm and industry, following a recent survey of over 140 managers active in the asset classes.
In its latest study, alternative assets data provider Preqin said a significant 47 per cent of real assets fund managers believe the AIFMD will have a negative impact on the industry, and 37 per cent believe it will have no noticeable impact
Andrew Moylan, head of Real Assets Products, commented, "The recent implementation of various regulations on the alternative investment industry has received mixed reviews from fund managers, with many wary of the additional costs and administrative requirements associated with compliance. In particular, fund managers appear to have a negative outlook on the AIFMD, with many unhappy with the additional cost and administrative burden required in order to be compliant and to continue marketing their funds within the EU."
The study also found that almost two-thirds (63 per cent) of infrastructure managers felt the directive will have a negative impact on the industry, with 41 per cent of real estate managers feeling the same way.
A greater proportion of real estate managers will not market within the EU. Thirty-eight per cent of real estate managers indicated they will not market their funds in the region, compared to 26 per cent of infrastructure managers. This may present opportunities for other managers to secure capital from investors based in the EU, with over 2,000 European institutional investors investing in real estate or infrastructure.
Dr. Joseph Louro, chief executive officer of Red Bank, New Jersey-based investment education company InvestView (OTCQB: INVU) said that fund managers who want to engage in business within the EU must comply with the AIFMD which took effect last month. However, fund managers must understand the Directive and all its implications.
JOBS Act Key Facts:
- A notable proportion of real estate managers, 30 per cent, believe the JOBS Act is having a positive impact on their firm and industry, although only 1 per cent of managers surveyed have registered and will market under the Act.
- Eighteen per cent of infrastructure managers believe the JOBS Act is having a positive impact, with 8 per cent of respondents either already registered or planning on registering under the Act.
- Over 70 per cent of both infrastructure and real estate fund managers either will not market their funds under the JOBS Act, or do not plan to at the moment. Increased scrutiny from the SEC was named by the greatest number of real estate managers (18 per cent) as the main reason preventing them marketing under the JOBS Act.
Moylan added, "Regarding the JOBS Act, although this allows managers to market to a broader audience through registration under section 506(c), very few intend to follow this route in the short term, with many firms concerned about increased scrutiny of regulators and the additional costs that advertising would bring, as well as the potential negative perception of wider marketing. Only time will tell whether managers will adapt to and take advantage of the new opportunities created by the JOBS Act."
Louro said in the company web site, "It is our opinion that now, more than ever before, it is critical that the individual investor come to understand the forces that influence the marketplace. We specialize in assisting common investors through this process by offering them the tools, training and confidence that is required to successfully navigate the market in these trying times."
InvestView, Inc. provides and delivers a comprehensive online program of investor education: proprietary investor search tools and trading indicators, weekly newsletters as well as access to live weekly Trading Rooms. It delivers subscription-based financial education courses through InvestView's Web site. InvestView also allows new retail investors to use the portal's subscribed information on a 2-week trial period for $9.95.
The company does it through its online education, analysis and application platform that provides analysis, tools, education solutions and an application. InvestView's web-based tools were designed to simplify stock research and improve the investor's research efficiency. One such tool is the Market Point, which is made up of five sections, namely: Charts, Stock Watch, Market, Calendar and Campus.
InvestView offers five training courses that provide an incredible education in the stock market. The five InvestView courses build upon each other. Beginners should take them in the suggested sequence, while more seasoned traders may jump right into the more advanced topics that they are craving to better understand and give them the edge as a successful trader. Each course is offered via live webinar and as a recorded on-demand videos that is immediately posted at the end of each webinar. For more information, please visit their web site.