The Alternative Investment Management Association has published a Guide to Sound Practices for Funds of Hedge Funds Managers.

The Alternative Investment Management Association has published a Guide to Sound Practices for Funds of Hedge Funds Managers.
 
The guide was developed by some of the world's leading funds of hedge funds practitioners. It focuses on areas including risk management, due diligence, disclosure to investors, valuation, management of conflicts of interest and other operational issues.
 
It will be a practical business tool for funds of hedge funds managers and will also seek to provide relevant and insightful information for investors, regulators and policy makers, and the hedge fund industry's service providers.
 
The guide was produced by a steering group of leading funds of hedge funds managers.  The group 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.
 
Andrew Baker, chief executive of Aima and a member of the steering group, says: '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.'