About Public Asset Management COMPANIES
Q. What are distressed assets or nonperforming Loans?
A. Distressed assets are tangible (e.g. real estate) and intangible (e.g. share, corporate bonds, etc) assets with sharply reduced value resulting from a company's deteriorated risk profile and/or bankruptcy. Meanwhile, nonperforming loans or NPLs are loans which are either in default or close to being default because debtors have not made their scheduled payments for at least 90 days. Institutions holding distressed assets or NPLs in their portfolios may choose to sell them to other investors in order to get rid of bad debts and clean up their balance sheets.
Q. What is an AMC?
A. Asset Management Companies or AMCs have two roles, one related to purely investing and another on corporate finance. In the first role, traditional AMCs invest pooled funds on behalf of clients, providing them with more diversification and investing options that match their financial objectives. In the second role, AMCs assist companies in maintaining their tangible and intangible assets and ensures that they are put to their best use.
Q. What are Public AMCs and how are they different from traditional AMCs?
A. Public AMCs are government owned or controlled corporations specifically mandated to specifically manage distressed assets or NPLs of both public and private institutions.
Q. How do Public AMCs deal with distressed assets or NPLs?
A. Public AMCs are good at converting unproductive inputs to productive ones, by dealing with the distressed assets/loans, or the borrowers, or both. Specifically, Public AMCs directly address the NPL and distressed asset problems by acquiring, managing and disposing of impaired bank assets or corporate debt, thereby rehabilitating these bad assets and loans
Q. What is IPAF?
A. The International PublicAsset Management Forum or IPAF was founded in May 2013 by six public AMCs in four developing member countries of the Asian Development Bank, to exchange experiences, share best practices, and search for innovative solutions that will address the distressed asset or NPL problem in the Asian region.
Q. What is the purpose of IPAF?
A. The International Public AMC Forum (IPAF) is a platform for public asset management companies (AMCs) and institutions in Asia to share successful strategies and knowledge that will enable them to work collectively in addressing regional economic issues. As AMCs play a critical role in facilitating bank restructuring and asset recovery, IPAF, through mutual cooperation amongst public AMCs, shall strengthen crisis response mechanisms for mitigating financial vulnerability and contagion and systemic risks, and promote a more resilient regional economy.
Q.How does IPAF work?
A. IPAF employs the shared knowledge of its members and expert participants to teach and learn from each other's experiences in dealing with distressed assets and non-performing loans. Specifically, IPAF promotes capacity building among members through the following:
- Annual summit meetings and conferences. To provide a mechanism for knowledge sharing, IPAF conducts annual summit meetings and conferences among its members and public and private sector policy makers and experts. Meetings are also conducted among IPAF members to define strategies and develop concrete action plans.
- Case studies and other research. To provide knowledge products for AMCs and practitioners, IPAF helps produce major research papers and case studies on the successes and failures of public AMCs in the region.
- Training seminars. IPAF conducts training programs aimed at enhancing distressed asset management capacities among public AMCs and other invited participants.
- IPAF website (https://ipaf.adb.org). IPAF provides members with online access to relevant information, research papers, reference materials, training schedules, and networking data.
A. The IPAF Summit and Conference is held once a year.
Q. Who organizes the IPAF Summit andConference?
A. The IPAF Summit and Conference is hosted by IPAF's incumbent Chair in coordination with the IPAF Secretariat (ADB)
ABOUT IPAF MEMBERSHIP
Q. Who are the current members of IPAF?
A. IPAF has 11 existing members, eight of which are General Members while three are Associate Members. IPAF members are from the People's Republic of China, Republic of Korea, Thailand, Vietnam and Republic of Kazakhstan. You may read more about each IPAF member at the Members' section.
Q. How can an organization become a Member of IPAF?
A. To be eligible for IPAF membership, applicants must be a public AMC or institution, where a majority of its stake is owned by the government and/or is mandated by the government to manage public and private assets and loans. Further, a consensus vote by the current members will be needed to decide the appropriateness of admission. Please see "Membership" section for more information.
Q.What are the obligations of members?
A. The primary obligations of IPAF members include attending the yearly conferences and coordinating council meetings. Meanwhile, the IPAF Chair, which is selected annually, is required to host the Annual Summit and Conference. However, the hosting duty may be deferred due to internal difficulties or financial constraints.
Q.What are the benefits of being an IPAF member?
A. IPAF members benefit from knowledge shared by experts in the field of distressed asset and/or non-performing loans management through the regular training seminars organized by the Forum. In addition, members have exclusive access to latest investment trends and strategies, as well as, innovative areas for investment through the annual conferences. Finally, member institutions gain international exposure and opportunity to network with other important AMCs and related financial institutions in the Asian region.
Q. What differentiates a generalmember from an associate member?
A. General Members (GMs) must have the capacity to host and fund the annual Summit and Conference and to support training seminars. In addition, GMs are entitled to the following privileges:
- Automatic participation in the annual Summit and Conference, and other IPAF Activities (i.e. Coordination Council, training seminars);
- Membership to the Coordination Council (see Section II of this Guideline); and
- Voting rights, on all key issues, which the members must mutually address.
About the IPAF Secretariat
Q.What is the role of the Asian Development Bank in IPAF?
A. ADB and IPAF have a mutually beneficial relationship. Currently, ADB serves as the IPAF Secretariat, initially for the first three (3) years. On the other hand, through IPAF, ADB furthers its mission by supporting regional cooperation and participating in a ground breaking vehicle for Asian economic development.
Q.Where is the IPAF Secretariat located?
A. For the first three (3) years since the Forum's inception, the IPAF Secretariat is located inside the Economic Research and Regional Cooperation Department (ERCD), Asian Development Bank Headquarters in Manila, Philippines.
Q.What does the IPAF Secretariat do?
A. The main role of the Secretariat is to set up IPAF's knowledge platform, generate knowledge and establish ways to interface with policy makers in the region, and encourage underdeveloped economies without AMC mechanisms to be involved in IPAF. The IPAF Coordinating Council and the IPAF Secretariat work closely to draw up a concrete and sustainable blueprint for IPAF and to create a solid foundation for it to achieve self-sustainability as stipulated in the IPAF Charter. In addition, the Secretariat provides administrative support to IPAF through the following:
- Coordinate with the relevant IPAF Chair, and in consultation with the CC members, the annual IPAF activities (i.e. annual Summit, CC meetings and training seminars);
- Provide overall administrative support to the IPAF members;
- Maintain the IPAFwebsite; and
- Prepare research papers or priority economic issues.
About the IPAF Website
Q. As a member, how do I access relevant documents on IPAF activities as well as latest economic and financial data?
A. Information and other related documents on various IPAFactivities -such as agenda, speeches and training materials- are available at the IPAF website via the E-Forum. You may also access links to latest economicand financial data and related publications through the News and Data sectionof the website.
Q. Who can access the E-Forum?
A. Currently, only IPAF Member institutions have exclusive access to IPAF materials via the E-Forum.
Q. I would like to have handy information on IPAF and its activities. Where can I get such information from the website?
A. For a brief introduction on IPAF, you may download the IPAF Brochure for free.
Q. I would like to join IPAF's activities. Can I register online?
A. Yes. Invited participants to IPAF's various activities may confirm participation through the website's online registration system.