Free Online Workshop: 

ODD practices on Liquid, Regulated Funds

Wednesday, March 12, 2020 at 11:00 AM EDT.

Allocators who invest in funds and managers who offer daily liquidity need to perform Operational Due Diligence process as part of their investment monitoring to manage risk. Regulators around the globe continue ramp up regulations to enforce appropriate disclosures from funds and encourage a better understanding of liquidity risk.

Given the notable news stories in 2019, it is not a surprise some daily liquidity funds are pushing the limits of adequate liquidity. Allocators must understand how to use ODD to reduce their risks and properly perform their fiduciary duty.

Key takeaways:

  • What type of ODD framework is suitable for assessing liquid, regulated funds?
  • How liquid is my liquid fund? What questions should I ask?
  • Equity vs Fixed Income liquidity – as an allocator should I think of them differently?
  • The impact of regulation on regulated funds

In James Newman’s career, he had the good fortune to adopt ODD principles to a wide range of strategies and liquidity profiles, ranging from onshore/offshore/regulated/non-regulated. Indeed it was the application and added value of performing ODD on daily-dealing funds that avoided liquidity traps or informed the relevant teams to manage exposures in line with increased liquidity risk.

Your Instructor:
JN Photo no tie 2

James Newman
Co-Head of perfORM

James Newman developed and led the Global ODD group at Barclays Wealth.

For the past 8 years, James was responsible for passing or failing operational risk assessments across the bank’s retail and non-retail investment product offerings.

As a Chartered Accountant, James has over 20 years financial services experience including managing the UK compliance and operational functions for an investment manager.