AIMA

AIMA's Investor Steering Committee Paper

Continuing its strong tradition of both supporting and providing publications related to a wide variety of educational guides and sound practice materials throughout its 20-year history and acknowledging the “institutionalisation” of the hedge fund industry and the growth of institutional investor participation, AIMA is very pleased to publish a new paper for investors and managers, written by members of AIMA’s Investor Steering Committee (ISC). This paper reflects investor views, expectations and preferences on a variety of important operational and organisational issues which are increasingly the focus of both due diligence reviews and discussion among investors and fund managers.

The paper, entitled A Guide to Institutional Investors’ Views And Preferences Regarding Hedge Fund Operational Infrastructures, begins with a discussion of “Governance”, authored by Luke Dixon of Universities Superannuation Scheme (USS), which outlines the fundamental importance of good governance, key constitutional documents and the role of boards of directors.

The second section focuses on “Risk” and is authored by Andrea Gentilini from Union Bancaire Privee (UBP). It focuses on a variety of reporting practices concerning the investment portfolio, operations, counterparties and liquidity.

The third section, covering “Investments”, is authored by Kurt Silberstein of the California Public Employees Retirement Scheme (CalPERS) and discusses performance reporting, terms and conditions, control of assets, and transparency.

The fourth section addresses “Capital” and is authored by Michelle McGregor Smith of British Airways Pension Investment Management. It discusses issues related to a firm’s ownership structure, investor relations, and related sales and marketing activities.

Finally, the fifth section, “Operations”, authored by Adrian Sales of Albourne Partners, focuses on a variety of operational issues, including valuation, business continuity planning, compliance and relationships with service providers.

AIMA’s ISC is jointly chaired by current AIMA Chairman Todd Groome and former AIMA Chairman Christopher Fawcett of Fauchier Partners.

Download the Investor Steering Committee Guide to Institutional Investors’ Views and Preferences Regarding Hedge Fund Operational Infrastructures

For more information on the work of the ISC please contact Tom Kehoe, AIMA’s Research Manager.