Fund Structuring

Fund Structuring

LumX was an early and vigorous proponent of greater transparency in the hedge fund industry. A key initiative in this area was the creation, in 2010, of the LumMap fund structuring platform, which offers extensive expertise and infrastructure, responding to the growing investor demands for improved governance, segregation of assets, and increased transparency from investment managers.

LumX drew on its own 20-year experience investing in complex alternative fund strategies to ensure that LumMap’s features would help managers setting up funds on LumMap to fully express their investment strategy without the restrictions or administrative complications often associated with platforms created to support structuring activities by investment banks. LumMap can efficiently launch funds in a variety of jurisdictions and can help managers meet the regulatory requirements under regimes such as UCITS and AIFMD.

LumMap provides flexible and cost-effective bespoke structuring solutions tailored to meet specific investment manager needs and regulatory requirements in a strong risk control environment. LumX’s network of service providers, trading counterparties, and prime brokers ensures fully independent valuations, tight control over mandate guidelines and limits, and direct verification of asset custody and ownership for each fund on the platform. It also offers managers the flexibility to trade through their preferred counterparties, minimizing their internal administrative burden.

Full integration with the risk reporting capabilities of LumRisk, a LumX group subsidiary, provides LumMap clients with a comprehensive view of portfolio risks through a powerful set of web-based reports and dynamic analysis tools.

 

For any enquiries about the services offered and capabilities of the fund platform, please contact us here

LumMap profile - Hedgeweek Special Report October 2018

 

Key LumMap benefits

Fund governance

Independent board that appoints all service providers and provides oversight in line with regulatory requirements and fund guidelines

Fund valuation

Independent fund administrator appointed from among leading industry providers responsible for accuracy of reported net asset values

Risk monitoring

Daily verification of compliance with investment guidelines

Service providers

Selected amongst industry leaders with services and fees negotiated directly by LumMap

Transparency

Full integration with LumRisk risk platform. Provides clients with detailed online risk analytics and stress testing capabilities based on look-through transparency and consolidation of underlying holdings

Cash management

Cash and collateral management procedures negotiated with counterparties to minimise counterparty risk