On November 11th, 2020, Cube Finance hosted the webinar “Complex Strategies in UCITS: Compliance and Risk Management”, an online event dedicated to professionals operating in the fund industry.
The webinar focused on the management of UCITS funds using derivatives, including futures and options, and on maintaining full regulatory compliance while adopting portfolio management techniques traditionally associated with hedge funds, commonly referred to as complex strategies under the applicable European regulatory framework.
The session covered several practical investment strategies, including:
- Long/short strategies on equity indices and bonds
- Delta neutral strategies with short call overlays on stock indices
- Directional strategies implemented through options on stock indices
- Buy-write strategies combining stock purchases with the sale of covered calls
Participants were also introduced to:
- The comparison between the Commitment and Value at Risk (VaR) approaches
- Compliance aspects related to pre-trade and post-trade monitoring of regulatory limits
- The management of potential or actual breaches of regulatory parameters and the available remediation options
The webinar provided an overview of the operational and compliance challenges associated with complex UCITS strategies, highlighting practical approaches to risk and regulatory management.
