INTERNATIONAL: AIMA publishes Funds of Hedge Funds Guide

Wednesday May 6 2009

The Alternative Investment Management Association (AIMA): the global hedge fund industry association – has published the first ever global Guide to Sound Practices for Funds of Hedge Funds Managers (FoHFs).

The guide was produced and overseen by a steering group of key fund of hedge fund managers;

The guide sets out clear recommendations for sound practices in the following areas:

* -Creating and Managing a Fund of Hedge Funds Business

* -Investment Process and Portfolio Risk Management

* -Administration and Operations

* -Raising Capital and Investor Relations

* -Fund Structures and Governance

* FUNDS_AXIS GRC provides a comprehensive ready-to-go governance, risk and compliance framework for hedge fund and fund of hedge fund businesses. For a demonstration, contact info@funds-axis.com

* The guide while providing insightful information for investors, regulators and policy makers, is to serve as an informative tool for FoHFs Managers and should not be taken as a substitute for specific advice.

* AIMA together with the steering group believes that the fund of Hedge Funds business model remains valuable for many hedge funds investors and therefore this guide will provide a useful starting point for new participants, as well as a reference for existing ones.

* The guide mentions the existence of clear evident to support the continued presence of hedge funds in a portfolio for investors with a long term outlook. AIMA believes that the timing of this publication and recommendations are particularly pertinent given that the markets have been in crisis.

* Andrew Baker, CEO of AIMA, and a member of the steering group, commented, ;AIMA has produced a huge body of work on sound practices and this was the “missing book in the library `.

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.”

Related Link:

* AIMA to launch first ever fund of hedge funds standards