New England Asset Management
New England Asset Management is a global asset management firm. Its services include asset management, investment accounting, risk management, and reporting. Its customers are located throughout the world. The firm’s mission is to help customers achieve their financial goals. It was founded in 1983 and is headquartered in Boston, Massachusetts.
Conflicts of interest
A conflict of interest is a financial interest that is either positive or negative. It can be large or small, but the conflict must be direct, immediate, and reasonably foreseeable. An interest that is remote does not create a conflict. However, a financial interest that is directly related to the client’s investment strategy could pose a conflict.
There are many ways to manage conflict of interest. One method is to make sure that the fund manager is completely independent of the fund’s investors. The first step is to seek a third-party valuation of all of its portfolio companies. The manager will then present pricing terms and conditions to investors for approval. In many cases, the advisory committee will have the final say.
Newton has a Conflicts of Interest Policy that outlines the circumstances in which conflicts can arise. It also describes its systems and controls to manage conflicts. While Newton cannot guarantee that these systems will be 100% effective, it believes it has taken the necessary steps to minimize the potential for conflicts of interest.
Performance-based fees
A common rebuttal to performance-based fees is that they are not an effective compensation system. Rather, they favor certain investors and create conflicts of interest for the portfolio manager. Moreover, performance-based fees do not guarantee higher returns. In fact, most funds do not outperform the broader index over a long period of time.
A better way to determine the performance of a mutual fund is to compare its expenses and trailing three-year returns to those of a competing fund. If the two funds have the same Sharpe ratio and expense ratio, you’ll be able to find out which one is generating the higher performance.
Performance-based fees may sound like a good compensation structure for investors, but be cautious. This compensation method may incentivize fund managers to take inappropriate risks in their portfolios. It can lead to increased volatility, which can be problematic for investors during periods of weak markets.
Side-by-side management
Side-by-side management is a service offered by New England Asset Management and can minimize conflicts of interest that can arise when an advisor manages accounts with different fee structures. Typically, side-by-side management involves the management of mutual funds alongside smaller retail accounts. Because these types of investments have varying fees, there is an incentive for the advisor to favor the larger fund, which can lead to unequal costs and unfavorable trade executions.
In the buy-side community, compliance teams must demonstrate a clear compliance record and demo asset management nstrate that clients are treated fairly. Side-by-side risk can also result from active portfolio management involving diverse types of funds. As such, an asset management firm may be required to compensate a client who has been disadvantaged.
General Re Corporation
General Re Corporation has acquired New England Asset Management, an insurance investment management company based in Farmington, Conn. The company has about $7.5 billion under management, 25 employees, and a client list of 45 insurance companies. In addition, the company offers investment accounting and reporting services. The firm serves customers around the world.
New England Asset Management is a registered investment adviser under the Investment Advisers Act of 1940. It has a branch office in San Diego, CA, and a wholly-owned subsidiary in Dublin, Ireland. The company is also regulated by the Financial Conduct Authority in the United Kingdom.
In addition to asset management, General Re also writes excess and surplus lines insurance through General Star Management Company. The firm also provides alternative risk solutions through Genesis Underwriting Management Company, and acts as a business development consultant through Ardent Risk Services, Inc. It is also a swap and derivatives market dealer through General Re Financial Products Corporation.