August « 2011 « marcusevans-finance

Archive for August, 2011

CFO Summit XXIII


Trintech on the Strategic Value of CFOs Today









 

Paul Byrne of Trintech, a solution provider company attending the marcus evans CFO Summit XXIII Fall 2011, discusses how CFOs can add value in organizations today.

Interview with: Paul Byrne, Chief Executive Officer, Trintech


FOR IMMEDIATE RELEASE


Automating certain processes in the finance function would give Chief Financial Officers (CFOs) more time to lead the organization through growth and development, says Paul Byrne, Chief Executive Officer, Trintech. It would also help CFOs control the risk of error in their public company filings in today’s highly litigious business landscape.


From a solution provider company at the upcoming marcus evans CFO Summit XXIII Fall 2011, in Las Vegas, Nevada, November 10-12, Byrne highlights the areas within the finance function that could improve and discusses how the CFO’s role can become invaluable.


How can CFOs maximize the value of their organization?


Paul Byrne: CFOs spend most of their time overseeing the processing of financial transactions. However, their strategic value lies in monitoring risks and providing guidance for the growth and development of the business.


CFOs must manage core processes more efficiently through automation, improved visibility over financial processes and faster reporting through a quicker close cycle. They could be a strategic asset to the organization if they spend less time on basic, low value added activities, such as processing transactions and closing the books.


What opportunities can CFOs take advantage of?


Paul Byrne: Having a single view into all of the company’s activities globally would help CFOs monitor and lead progress. It would help identify risk and opportunities for expansion, as well as operational cost reductions.


There are four areas where the finance department and CFOs can be more efficient.


Firstly, improving transparency and visibility across the organization and its interdependencies. Having a system in place which manages and tracks the financial processes will allow for elimination of duplicate tasks, manage interdependencies and in itself would make people more efficient in their role.


Secondly, automating manual type processes, such as high volume transaction reconciliations, would leave more time to manage exceptions, look at control breakdowns and analyze the patterns in those exceptions. Better quality data produced internally would improve the integrity of regulatory reporting data and allow the re-use of data for similar filings as it will have been captured in the reconciliation process and made available to all reporting engines of the Company.


Thirdly, CFOs need to have internal controls in place to be able to step back, look at the finance function from a different perspective and identify potential risks to the business, particularly when evaluating opportunities for expansion of developing shared service centers. This job carries a lot of personal risks to the CFO, as it is the CFO who signs off financial statements. Making the controls a business process rather than an accounting process can add a lot more efficiency to the role.


And fourthly, optimizing resources, as many highly skilled and paid employees are performing roles which can be automated, thereby spending more time reviewing performance, risks and business opportunities.


What should CFOs of multinational companies consider?


Paul Byrne: In today’s litigious world, reducing the risk of error is critical. Many organizations operate globally and have to comply with changing regulations in different jurisdictions. Having a platform to standardize processes worldwide would help the CFO manage such risks.


This would also give the Board of Directors and audit committee the confidence that the frameworks are in place for the business to grow and expand into new geographies.


Any final comments?


Paul Byrne: Far too many public companies are coming up to a crunch at the last minute with their public company filings. CFOs need to strengthen the controls in their organization, while reducing the time it takes to produce the financial information and close the books.


To do that, they need to innovate. Consider the technologies available in the marketplace which could help them save time and money. CFOs must have an agile mindset to lead the business through change.



Contact: Sarin Kouyoumdjian-Gurunlian, Press Manager, marcus evans, Summits Division


Tel: + 357 22 849 313
Email: press@marcusevanscy.com



About the CFO Summit XXIII Fall 2011


This unique forum will take place at the Red Rock Casino, Resort & Spa, Las Vegas, Nevada, November 10-12, 2011. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on how innovation can transform finance organizations, the CFOs role in growth and international expansion and the 2012 financial landscape.


For more information please send an email to info@marcusevanscy.com or visit the event website


marcus evans group – finance/insurance sector portal


Complementing our summit format, the Finance Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!


                                    


Please note that the summit is a closed business event and the number of participants strictly limited.


Trintech


Trintech is the leading global provider of integrated software solutions for the Last Mile of Finance.  From the time a transaction occurs to the time financial statements are issued, Trintech’s innovative Unity Suite automates data collection, account reconciliation, financial close management, financial reporting, XBRL, and financial control testing. 


For more information, visit: www.trintech.com


About marcus evans Summits


marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-on-one business meetings. For more information, please visit www.marcusevans.com



All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com


 

Private Wealth Management APAC Summit 2011







 



 





 














Centric Wealth Advisers: Rethinking Private Wealth Management







 

Ashley Owen, a speaker at the marcus evans Private Wealth Management APAC Summit 2011, discusses the main challenges for market investors. 


Interview with:  Ashley Owen, Chairman, Portfolio Construction Committee, Centric Wealth Advisers.



FOR IMMEDIATE RELEASE


“The fact that virtually all the theories and assumptions supporting the investment industry’s current practices are fundamentally flawed, requires a complete re-think of how money is managed”, says Ashley Owen, Chairman, Portfolio Construction Committee, Centric Wealth Advisers. A speaker at the upcoming marcus evans Private Wealth Management APAC Summit 2011, Owen shares his views on the problematic definition of risk and its implication on asset allocation.  


What is the problem with how “risk” is treated by the investment management industry?


Ashley Owen: Most people now accept that virtually every assumption underpinning the modern portfolio theory is flawed, for example that markets are perfectly efficient at all times, that prices are always fair, that returns are normally distributed and that volatilities and correlations are constant. The problem is that the investment management industry still bases their processes and practices on defective theories.


It is un-nerving for investors to realize that markets are not stable, that there are no nice straight lines, and the markets don’t magically revert or “come good”.The Global Financial Crisis revealed that the “emperor has no clothes” and that the investment industry has offered no solutions or alternatives.


What are the implications for asset allocation?


Ashley Owen: One of the implications is that we need wide ranges for asset class weights in portfolios. Another change is the use of non-linear, asymmetric processes to maximize risk/return outcomes in portfolios. We also need to take into account non-stable and non-constant volatilities and covariances in setting asset allocations. Additionally, measures that take into account path dependency are critical in planning portfolios to achieve capital and cash flow goals.


Are there better ways to define risk?


Ashley Owen: When investment and portfolio managers speak about risk, they assume that risk means volatility. However, in the real world when investors think about risk they want to know about more practical concerns –the risk of losing or running out of money, failing to keep up with inflation or falling short of a specific capital, etc. Our processes enable investment portfolios to be described in terms of these real-life risk measures, instead of just a single volatility number or Gaussian probabilities.


What are the main challenges facing private wealth managers in the APAC region?


Ashley Owen: Inflation is the main problem facing investors in this part of the world. It is gathering pace virtually in all countries in Asia, so the best solution is to focus on quality assets that provide inflation protection, and shares in quality companies that can pass through inflation. The second difficulty, apart from inflation, is the existence of asset price bubbles in many markets caused by ultra-loose monetary policy in the decaying western economies of US/Europe. It is crucial then to recognise bubbles and avoid paying too much for overpriced assets.


Has the ongoing Euro periphery sovereign debt crisis altered the behavior of investors in Asia?


Ashley Owen: Yes, one of the assumptions that the world took for granted for half a century was that there was not any such a thing as a risk free asset. However, it is possible to observe now that building a theory portfolio process on the idea of a risk free asset just makes no sense. So certainly it has changed the way investors all over the world have constructed their investment portfolios.         


What are your projections for the coming years?


Ashley Owen: Surprises are going to be more on the upside than on the downside, despite impending problems in China with the collapsing of asset price bubbles and the construction boom. Nevertheless, I can see another reasonably good year for equities in several smaller markets in the region. Globally, there is probably more upside in government bond markets in the next year or so, despite the escalating fiscal and government debt crises in the big decaying western markets.



Contact:
Veronica Diaz
Journalist
marcus evans, Summits Division
Tel: + 357 22 849 347
Email:
press@marcusevanscy.com


Private Wealth Management APAC Summit 2011


This unique forum will take place at The Venetian Macao, Macao, China, October 31 – 2 November, 2011. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes presentations on the protection of investments assets, risk management administration and downside risk control.


For more information please send an email to info@marcusevanscy.com or visit the event website at www.pwmsummit.com  


marcus evans group – investment sector portal


Complementing our summit format, the Investment Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!







 

 


Please note that the summit is a closed business event and the number of participants strictly limited.


About marcus evans Summits


marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com



All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com


 


Private Wealth Management APAC Summit 2011


EDHEC Risk Institute Asia: Is Diversification a Good Strategy for Controlling Losses?







 

Stoyan Stoyanov, a speaker at the marcus evans Private Wealth Management APAC Summit 2011, shares his views on risk management practices and strategies for successful investing.


Interview with: Stoyan Stoyanov, Head of Research, EDHEC Risk Institute-Asia and Professor of Finance, EDHEC Business School



FOR IMMEDIATE RELEASE


The global financial crisis not only shifted the attention of investors to risk management practices but also revealed the shortcomings of techniques that were supposedly designed to manage downside risks.


A speaker at the marcus evans Private Wealth Managament APAC Summit 2011, taking place in Macao, China, 31 October – 2 November, Stoyanov explains that diversification matters but comes with limitations as well. Although this method allows investors to get the best risk/return trade-off in typical market conditions, it is incapable of dealing with loss control and therefore, helpless in sharp market downturns.


How did existing theories for risk management perform during and after the financial crisis?


Stoyan Stoyanov: Diversification has become a very popular risk management technique and the pillar of many investment philosophies, so much so that it is often considered, erroneously, synonymous with risk management.


After the global financial crisis this idea has lost value. Diversification is incapable of dealing with loss control in adverse economic conditions. The reason is that the correlation of assets tends to spike in market crashes, making diversification inefficient. However, complaints that diversification failed because it did not protect investors from big losses during the financial crisis are to some extent misleading. Diversification was not designed to provide downside protection in market crashes. It is actually designed to extract risk premia or to improve risk adjusted returns.


What techniques are useful for implementing loss control? 


Stoyan Stoyanov: The key is to go beyond diversification and identify techniques that can complement it and offset its shortcomings. Hedging and insurance strategies can be used for that purpose. However, it is crucial to understand that these techniques should be combined in a unified approach along with diversification to provide downside risk control without limiting the upside potential of the portfolio. Since loss control is dynamic in nature, it is necessary to rely on a dynamic portfolio construction technique rather than using static frameworks.


What strategies would you recommend to long term investors?


Stoyan Stoyanov: If those are high net worth individuals with specific consumption objectives, I would recommend strategies based on the asset liability management framework. Using this structure, we can construct a portfolio on the basis of different building blocks that have specific functions: the first one dedicated to generate performance, the second one created for income hedging and the last one designed to hedge retirement spending.


The asset liability management framework is well suited to meet short-term constraints and also to help investors to achieve their long-term objectives.


What are the main challenges facing private wealth managers in the APAC region?


Stoyan Stoyanov: The main challenge for private wealth managers is to incorporate or take advantage of better techniques that allow them to customise the solutions offered to their clients. Currently, industry practices are based on bucketing, with clients divided into different groups depending on their current assets.


However, this does not take into account their consumption objectives and commitment to future payments. 


It is fundamental to realise that bucketing people by current assets is just as important as dividing them by the sources of their wealth. For example, analyzing consumption objectives is the main challenge for “old money” clients, for whom the present value of future income is typically small compared to the current level of accumulated wealth. Analyzing factors impacting income stream is more important for “new-money” affluent clients, who typically are entrepreneurs who still enjoy a substantial stream of revenues.


Contact:
Veronica Diaz
Journalist
marcus evans, Summits Division
Tel: + 357 22 849 347
Email:
press@marcusevanscy.com


Private Wealth Management APAC Summit 2011


This unique forum will take place at The Venetian Macao, Macao, China, October 31 – 2 November, 2011. Offering much more than any conference, exhibition or trade show, this exclusive meeting will bring together esteemed industry thought leaders and solution providers to a highly focused and interactive networking event. The Summit includes visionary presentations and interactive forums on family office practice management, succession planning, risk control and investment management. 


For more information please send an email to info@marcusevanscy.com or visit the event website at www.pwmsummit.com  


marcus evans group – investment sector portal


Complementing our summit format, the Marketing Network – marcus evans Summits group delivers peer-to-peer information on strategic matters, professional trends and breakthrough innovations. Lend an ear to fellow experts and live news from our events on our LinkedIn and Twitter accounts!







 

 


Please note that the summit is a closed business event and the number of participants strictly limited.


About marcus evans Summits


marcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discuss strategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity to individually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings. For more information, please visit www.marcusevans.com



All rights reserved. The above content may be republished or reproduced – kindly inform us by sending an email to press@marcusevanscy.com