Aliier Passport™ is an innovative platform providing separate account and fund managers low risk access to global financial markets. Through Aliier Passport, managers gain access to institutional mandates, channel opportunities and international financial markets otherwise unavailable. This is done with little or no exposure by the individual manager to the regulatory, administrative and operational risks of doing business internationally.
The portfolio management business itself is hard and to be a top tier manager, your focus must be on portfolio management and the supporting requirements of investment research, portfolio construction, and trading capabilities. The investment world is also becoming increasingly intertwined, so avoiding the international marketplace is not an option for you if you are serious about building your business.
So, what happens when you inevitably decide to take your skills on the road and offer your services to the international marketplace? In todays growing regulatory environment, it will certainly increase your compliance, operational, tax and regulatory requirements and your business risks significantly. How many new staff will your compliance and operations team require? Can you find the right senior talent? Can you afford them?
Unfortunately in our current regulatory environment, going it alone can easily expose you to significant compliance, regulatory, operational and even tax risks before you even realize it. Recognizing these enormous costs and risks, international efforts today tend to be attempted in a couple of different ways. One technique is to establish an off-shore fund and try to funnel new assets in other countries into it with some indirect marketing.
Another is to act opportunistically and bid on large international institutional mandates that may come to the money manager’s attention. Either of these approaches, of course, “technically” creates an international presence but the real problem is that they don’t generally work very well. You really have to go there to get regular business. Despite those who still want to believe, “If I build it, they will come”, the only effective way to truly have a robust international capability is to establish an in-country presence. Period.
However, most small to mid-sized managers simply cannot afford an in-country presence and even larger managers don’t always have the skill sets internally, the orientation, or the relationships they need to be successful. For all but the largest managers, the financial and operational risks are simply too great to go it alone. Nor do managers typically understand how or want to take on the requirements to register entities, pay foreign taxes and obtain licensing in another country with all the complexity, uncertainty and operational risks that entails.
Equally as significant, many firms are simply unprepared to address or develop a cross-cultural understanding of normative non-domestic business practices they must adopt. The result is that many of the highest performing managers willingly, or perhaps unwittingly, severely limit their firm’s potential by shutting themselves out of lucrative international markets.
The Aliier Passport platform provides access and insulates a separate account manager from most if not all of the regulatory, compliance and operational risk exposure acquiring international access would normally entail.