AIMA to unveil funds-of-hedge-funds standards

The Alternative Investment Management Association is preparing the first-ever practice standards for funds of hedge funds.
JUL 07, 2008
By  Bloomberg
The Alternative Investment Management Association of London is preparing the first-ever practice standards for funds of hedge funds. “There are currently no dedicated guidelines for fund-of-hedge-fund managers, yet the majority of new institutional investors tend to favor this investment route rather than investing directly in hedge funds,” said Andrew Baker, AIMA deputy chief executive and a member of the steering group responsible for developing the guidelines. The standards are expected to be completed early next year. In addition to providing direction on sound practices for fund-of-funds managers, the guidelines will also seek to provide relevant information for investors, regulatory and political communities, and hedge fund industry service providers. “With established sound practices in place for hedge fund managers and on various hedge-fund-related topics, there is a desire to document managers’ activities and responsibilities,” Mr. Baker said. “The guidelines will demonstrate both the amount of work achieved in this area as well as the industry’s continued focus on documenting and enhancing its practices.” According to Hedge Fund Research Inc. in Chicago, the number of funds of hedge funds grew to 2,600 at the end of March, up from 2,220 at the end of 2006.

Latest News

JPMorgan tells fintech firms to start paying for customer data
JPMorgan tells fintech firms to start paying for customer data

The move to charge data aggregators fees totaling hundreds of millions of dollars threatens to upend business models across the industry.

FINRA snapshot shows concentration in largest firms, coastal states
FINRA snapshot shows concentration in largest firms, coastal states

The latest snapshot report reveals large firms overwhelmingly account for branches and registrants as trend of net exits from FINRA continues.

Why advisors to divorcing couples shouldn't bet on who'll stay
Why advisors to divorcing couples shouldn't bet on who'll stay

Siding with the primary contact in a marriage might make sense at first, but having both parties' interests at heart could open a better way forward.

SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives
SEC spanks closed Osaic RIA for conflicts, over-charging clients on alternatives

With more than $13 billion in assets, American Portfolios Advisors closed last October.

William Blair taps former Raymond James executive to lead investment management business
William Blair taps former Raymond James executive to lead investment management business

Robert D. Kendall brings decades of experience, including roles at DWS Americas and a former investment unit within Morgan Stanley, as he steps into a global leadership position.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.