The purpose of AIFMD reporting is to effectively monitor and prevent systemic risk and market disruptions.

It imposes a standard methodology of AuM calculation and leverage measures on Alternative Investment Funds ("AIFs").

ESMA publishes regularly opinions on the data requested, most lately on risk measures, to allow for a common application of the rules in Europe.

Since 2020, it is a point of emphasis and we see a greater number of controls implemented by national regulators to homogenise the data collection, more recently in France.

Under Annex IV of AIFMD, all authorised and registered fund managers must report transparency information on their funds to local regulators for each country they market in.

But this isn’t a simple process – reporting requirements differ for each jurisdiction and the nature of the fund. A late or incorrect reporting has serious consequences for the fund manager.

At AlphaOmega, we have a critical understanding of the sector, in particular private equity, infrastructure, hedge funds, real estate and debt funds. The AIFMD report allows the European Regulators to more closely monitor the investments and risks of AIFs distributed in Europe.

Two points of attention are important:

• No additional data collection, the AIFMD report is sufficient to measure the potential impact of the systemic risk.
• The NCAs will have to provide ESMA at least annually with an account of the actions taken to control leverage.

The methodology for calculating leverage and the quality of the data reported by the AIFMD reports will become a major concern.

The two Annex IV report categories are:

• AIFM report: consolidated view of assets managed.
• AIF report: required for each fund (AIF) detailing assets held, exposure to risk and investor profile.

Our AIFMD factory is designed for maximum automation of the reports creation and we produce hundreds Annex IV reports every year for all kind of portfolio: Liquid Asset, Private Equity, Real Estate, Infrastructure.

Our end-to-end solution covers data collection from multiple data sources, calculations, production, and filing to Regulators.