After a flurry of regulatory and legislative activity over the past few weeks the holidays saw a slow down and presented some time to reflect and absorb on what we have heard from the Treasury and from the G20. Based on history and the nature of our government, the rule changes and setup of a new systemic regulator is likely to be a slow moving process. However, it would be advisable to start thinking ahead to anticipate the impact on your organization.
We are already seeing money starting to flow back alternative assets after the redemption craze of last year, HSBC Global Asset Management reported last week it is finally seeing inflows into some of its hedge funds and believes it may have reached a “tipping point” after a tough period of client withdrawals. Funds that have their reporting act together will be the ones who will be able to take advantage of these inflows. We expect these are likely to seriously ramp up by the end of 2009, into next year and beyond.