Challenges faced by market participants
Institutional Investors Needs
- Finding new sources of return is a must; this is becoming more difficult as the offerings of market participants converge;
- Due-diligence reviews are time-consuming and costly; and
- Fiduciary risk remains a challenge for the investment process for institutional investors.
Emerging Managers Services
- A first institutional mandate is very difficult to obtain;
- Building a fund structure and operational framework appealing to institutional investors is burdensome; and
- Institutional fund governance and compliance requires in-depth knowledge and expertise.
Incompatibility between institutional investors’ needs and emerging firms offering , this results in a situation of inertia that hinders the development of new asset managers.
Quebec Emerging Manager Program
Quebec's asset management industry united to fill the gap
- Created by the Entrepreneurship work group of Finance Montreal, a cluster composed of financial institutions, and other market participants led by Messrs. Vital Proulx and Stéphane Corriveau; both wellestablished investment management firms from Quebec.
- To offer investment strategies to institutional investors seeking to diversify their sources of alpha by using emerging managers;
- To promote entrepreneurship in finance by granting mandates to emerging managers; and
- To offer operational and structural support to new asset managers.