NEWSLETTER of April 16, 2021

The following content has been added at finexpert:

BlackRock
GLOBAL FAMILY OFFICE SURVEY
The BlackRock global family office survey report combines data aggregated from an extensive online survey completed by 185 family offices globally as well as in-depth interviews with 20 family offices. Explore our insights around market outlook, asset allocation and sustainable investing. Our survey indicated that despite a challenging economic outlook, few family offices felt the need for material change to their portfolio. Many family offices cited their long-term investment horizon and high allocations to alternatives as the driver of this. >more

KPMG
PULSE OF FINTECH: H2 2020
As you will see in this edition of Pulse of Fintech, words became action as the global pandemic made digitalization a critical priority for businesses of every shape and size. The same can be said for incumbent financial institutions, and most importantly, for consumers. he changes we have seen this year will not likely stop when COVID-19 wanes. Around the world, people and businesses recognize the importance of agility and responsiveness. Companies across the financial services spectrum now understand what is at stake if they do not embrace digital innovation. >more

KfW Research
KFW-KREDITMARKT­AUSBLICK: KREDITNEUGESCHÄFT RUTSCHT INS MINUS
New lending business of banks and savings banks with domestic companies and self-employed persons, as calculated by KfW Research, slipped significantly into negative territory in the final quarter of 2020. Compared with the previous year, it fell by -4.3%, as the current KfW Credit Market Outlook shows. For the first half of the year, KfW Research forecasts a continuation of the downward trend: In the first quarter, new lending business is likely to be -8% below the previous year, and -10% in the second. >more

Alternative Investment Management Association
GLOBAL HEDGE FUND BENCHMARK STUDY 2021
In the face of unprecedented global disruption arising from the Coronavirus pandemic, assets under management for the hedge fund industry have continued to break new records. The coming year is likely to see an acceleration of trends as the industry moves onto a new phase – increased digitalisation, more socially conscious, playing an integral role in supporting the global economy as the world exits COVID-19. These are some of the headline findings of new industry research which saw Simmons and Simmons teaming up with Seward & Kissel and AIMA to publish The Global Hedge Fund benchmark study: Beyond the horizon. >more

McKinsey & Company
WILL PRODUCTIVITY AND GROWTH RETURN AFTER THE COVID‑19 CRISIS?
The pandemic caused the deepest economic disruption since World War II, disrupting both supply and demand, and the way ahead is extremely uncertain. Will the stars align for economies after the COVID-19 crisis? Despite the pressures on them and high levels of uncertainty, early evidence indicates that many firms were bold and innovative in response to the pandemic. Companies shifted rapidly to online channels, automated production tasks, increased operational efficiency, and sped up decision making and innovation of operating models. This could potentially more than double the rate of annual productivity growth observed after the global financial crisis. >more

THE CRYPTOCURRENCY UNCERTAINTY INDEX
Brian M. Lucey, Samuel Vigne, Larisa Yarovaya, and Yizhi Wang
2021
We develop and make available a new Cryptocurrency Uncertainty Index (UCRY) based on news coverage. Our UCRY Index captures two types of the uncertainty: cryptocurrency price uncertainty (UCRY Price) and cryptocurrency policy uncertainty (UCRY Policy). We show that the constructed index has distinct movements around major events in cryptocurrency space. We suggest that this index captures uncertainty beyond Bitcoin, and can be used for academic, policy, and practice-driven research. >more

THE DYNAMICS OF PAY-FOR-PERFORMANCE SENSITIVITY IN PRIVATE EQUITY FUNDS
Johan Cassel
2021
I explore the dynamics of pay-for-performance sensitivity in private equity funds arising from carried interest. Carry pay is conditional on beating a hurdle rate, making pay-for-performance sensitivity increase in fund performance. I show that within-fund variation in pay-for-performance sensitivity is positively related to company growth in portfolio companies acquired in buyouts. The effect is stronger when the importance of the direct component relative to the indirect component of pay for performance is high. Exogenous variation is generated by utilizing public market shocks, which impact the NAV of all private equity funds but have a heterogeneous impact on pay-for-performance sensitivity due to funds’ varying degrees of capital invested and the non-linear payoff structure of carried interest. My findings provide evidence of the importance of incentives for value creation in private equity. >more