Message from AIMA's CEO, Jack Inglis

By Jack Inglis, CEO, AIMA

Published: 21 March 2022

War in Ukraine, mounting sanctions on Russia, roiling commodity markets, a correction in cryptocurrencies and equities capsized due to being top-heavy in tech stocks.

As if that wasn’t enough, COVID continues to lurk, most recently rearing its head in China, with Shenzhen – a major regional tech hub – back in lockdown. Inflation is surging in the US, the UK and elsewhere, largely unchecked by rate hikes; for now. 

Meanwhile, managers are grappling with a deluge of new rule proposals by the SEC aimed at private funds under the auspices of improving investor protection and market transparency. And it’s only March! 

The Q1 AIMA Journal reflects on many of these pressing issues and answers the question: what does all this mean for you?

Investors are facing the prospect of rebuilding their books to reflect market conditions we haven’t seen in nearly 40 years. 

As a result, they are increasingly venturing out of equities into alternative investments in search of yield, diversification, and downside protection. For many allocators, the answer seems to be leaning further into private markets as well as hedge funds to offset anaemic equity returns. Articles in this edition outline why this could mean 2022 is the year that private debt comes of age. 

In a similar vein, contributors provide helpful roadmaps to avoid the common pitfalls ahead for those entering the digital assets space.
Another contributor approaches the same trend from the other side and explains why institutional investors must look before they leap by ensuring their due diligence processes develop in tandem with their more sophisticated risk appetites. For managers, this will mean becoming more transparent with their investors, either as part of the IR process or due to new regulatory mandates, on everything from fees to ESG policies.

Speaking of ESG, what is the cost of transitioning to net-zero? And how can commodity investing co-exist with responsible investing? Contributors address these complex issues head-on. 

It is worth noting that all these articles were penned before the invasion of Ukraine.

In the regulatory sphere, the Financial Services Act, the consolidated tape, and the ongoing fallout from the collapse of Archagos are just some of the topics dissected by contributors.

As always, the AIMA Journal provides a timely and thoughtful review of the themes across the alternative investment industry that matter to you, written by those that know it best. 

My thanks to all the contributors for their insights.

Jack Inglis