Coffee Break: Funds in focus: A sign of the times

The first half of this year has been active across the industry with attention given to the impact of trade tensions and ensuring that we are in a position to absorb the inevitable shocks associated. Having attended a number of conferences over the period, one recurring theme stood out:
How do we adapt, and how do we build lasting operational resilience?

With the role of regulation always being investor protection, it seems like a good place to start.

The focus on operational resilience and the implementation of Digital Operational Resilience Act (DORA), although challenging across larger organisations, have allowed us to identify key dependencies, potential weaknesses and proactively solve potential future problems at an operational level rather than react after the fact. It forced the “what if?” thinking and ultimately resulted in a more protected industry, with an ongoing shift to focus strategy not only on growth and stability, but also resilience.

There has been a lot of talk around “Simplification” in regulation and this being broadly welcomed by the industry. However, with the danger that this would slide into de-regulation, the focus remains on resilience and protection.

Private assets

With increased market volatility, the trend is to diversify. Looking to the private asset class, there are opportunities for boutique key trusted partners that can offer more by identifying “what’s the problem we need to solve with our clients?” Having the right technology platform that can adapt to changing trends, for example the evolution of open-ended private asset funds, allows us to answer these questions and move with the industry. An open-ended private asset fund fits well into a multi-asset portfolio, and we are seeing increased interest in this type of structure.

With Alternative Investment Fund Managers Directive II (AIFMD II) on the horizon, it’s widely anticipated that the Irish Limited Partnership (ILP) will become the preferred loan origination vehicle for U.S. managers accessing the European market.

ESG meets defence?

ESG and defence spending were never terms that I would have expected to see together however this is now the world we live in. With the need to increase spending in defence, it raises the question, can you be a sustainable fund that is focussed on defence? The ESG frameworks were not developed with defence in mind, however there is nothing within them that blocks this investment. At a recent Irish Funds conference, it was suggested that an additional pillar was needed, ‘Security’, making it ESSG.

The questions we’re asking as an industry are evolving. But that’s a good thing. Resilience, adaptability, and meaningful partnerships will continue to shape our approach — not just in how we comply, but in how we lead. If you’re navigating these shifts, we’ve got experience, thoughts and coffee – and we’re always happy to chat.