Report: IOSCO publishes first-ever global-level data on investment industry
/The Board of the International Organization of Securities Commissions (IOSCO) published the very first edition of the Investment Funds Statistics Report, offering new insights into the global funds’ management industry and the systemic risks it may pose to global financial systems.
IOSCO collects twice-yearly data via the Hedge Funds Survey, with this new report going a step further, including analysis of open-ended and closed-ended funds industries - a global first. The report data is collected from global IOSCO members.
This report will be an annual publication to facilitate regular collection and analysis of investment fund data. Regulators will be able to share information and keep an eye on trends in trading, leverage, liquidity management, markets and funding within the fund management industry.
The first report’s key findings include:
Open-ended funds are not, in aggregate, meaningfully leveraged by any metric
In normal times, portfolio liquidity is managed in line with the liquidity offered to investors
Hedge funds show strong liquidity management procedures, with portfolio liquidity in much greater excess of liquidity offered to investors
Hedge funds aggregate leverage is increasing but is still below levels seen in most banks
In closed-ended funds, leverage levels are not meaningful and liquidity management concerns are different to other fund types
Current leverage metrics don’t adequately capture leverage of private equity funds, which use a lot of leveraged finance and are more likely to move that leverage on the balance sheet of an investment target than on the fund’s own balance sheet
