New steps have been taken to standardise the way that investment performance of hedge fund managers is presented.

New steps have been taken to standardise the way that investment performance of hedge fund managers is presented.

The CFA institute and the UK Investment Performance Committee have issued a new edition of the standards in order to make this information clearer.

Among the changes in the new Global Investment Performance Standards (GIPS) will be the steps needed when presenting the value of assets with no current market value.

Jonathan Boersma, executive director of the GIPS standards at the CFA Institute, claimed that investors are increasingly looking for hedge funds that comply with the voluntary standards.

He said that businesses that do not meet these requirements are often excluded from competitive bids.

Mr Boersma stated: "By adhering to a universal set of standards investors are better served because firms are required to fully disclose their past performance based on the same criteria."

In other news, chief executive of sustainable investment and finance group UKSIF Penny Shepherd recently announced that ethical hedge funds performed strongly in the last three months of 2009.