Investment trust specialist Frostrow Capital is launching an Alternative Investment Fund Manager (AIFM) arm to its business, ahead of the impending Alternative Investment Fund Managers Directive (AIFMD) coming into force next year.
Frostow Capital, which provides strategic advice for investment trust companies, expects there will be a lot of demand from boutique firms to outsource their AIFM services. From July next year, EU legislation will require investment trusts running over €100m to appoint a new regulated entity in the form of an AIFM, which will effectively oversee the risk management, fund valuations and gearing policy of the company. The AIFM will also be tasked with overseeing the investment strategy of the investment trust, along with acting as a custodian. A fund management company could appoint ...
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