By Sophie Baker
The Alternative Investment Management Association (AIMA) has published the world's first global Guide to Sound Practices for Funds of Hedge Funds Managers, developed by some of the world's leading fund of hedge funds (FOHF) practitioners.
The global hedge fund industry association's guide focuses on areas such as risk management, due diligence, disclosure to investors, valuation, management of conflicts of interest and other operational issues.
AIMA hopes that the guide will act as a practical business tool for FOHF managers, and will provide relevant and insightful information for investors, regulators and policy makers, as well as for the hedge fund industry's service providers.
The production group for the guide consisted of Unigestion, Financial Risk Management, Man Investments, Fauchier Partners, Pacific Alternative Asset Management, Ivy Asset Management, HDF Finance, Penjing Asset Management and Simmons & Simmons.
"AIMA has produced a huge body of work on sound practices and this was the missing book in the library'," commented Andrew Baker, CEO of AIMA. "It is particularly important given recent events that there should be dedicated guidelines for funds of hedge funds managers. Funds of funds are a critical sector in the industry, are of particular interest to institutional investors, and it is right that AIMA has taken the lead in documenting sound practices. We hope that these guidelines that have been drawn up by such a distinguished and experienced group will be widely observed within the industry."