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AIMA Canada Introduces Hedge Fund Primer for Canadian Investors


Date: Tuesday, June 15, 2004

The Canadian chapter of the Alternative Investment Management Association (AIMA Canada) today introduced the AIMA Canada Hedge Fund Primer (the Primer). The Primer is designed to demystify hedge fund investing and provide a broader understanding of hedge funds to Canadian investors. The 48-page publication covers the hedge fund market in Canada, hedge fund strategies, and the risk/return characteristics of hedge funds, and is aimed at the financial community and individual investors. It is also intended to provide financial advisors and individual investors with proven strategies for allocating hedge funds within a diversified portfolio. "Publication of the AIMA Canada Hedge Fund Primer represents another important step in bringing the hedge fund industry into the mainstream of Canadian investing," said AIMA Canada Chair Jim McGovern. Mr. McGovern noted that the Primer is AIMA Canada's second major educational initiative this year. In March, the organization published its Guide to Sound Practices for Canadian Hedge Fund Managers. The Guide, which covers the practical aspects of establishing and managing a hedge fund business in Canada, has enjoyed broad distribution in the Canadian investment community. Clive Morgan, Co-chair of AIMA Canada's Education and Research Committee which developed the Primer said: "Given the extensive interest in hedge funds, the Primer will become a very valuable information resource for both individual and institutional investors in Canada." Mr. Morgan said that the Primer is available in printed form for a nominal fee from AIMA Canada and can be downloaded free of charge from the AIMA Canada Web site at www.aima-canada.org. The Primer is a user-friendly information source with six sections. Key topics covered include: Section 1. The Hedge Fund Industry This section covers the history and size of the hedge fund industry, typical hedge fund investors, and provides an overview of the Canadian hedge fund landscape. Section 2. Hedge Fund Characteristics This section discusses the structure and general characteristics of hedge funds and compares hedge fund investing to traditional investing. Section 3. Typical Hedge Fund Strategies This section covers typical hedge fund strategies including relative value strategies (non-directional), event-driven strategies (non-directional and directional) and opportunistic strategies (directional). The section also provides information on the composition of assets by strategy in Canadian and Global markets. Section 4. Hedge Fund Risk/Return Drivers This section discusses the historical risks and returns of hedge fund strategies and the risk factors associated with these strategies. Section 5. Investing in Hedge Funds This section discusses the different types of hedge funds and the reasons to invest in hedge funds. The section also addresses asset allocation and hedge funds and concludes with factors to consider before investing in hedge funds. Section 6. Glossary The Hedge Fund Primer's final section provides a glossary of commonly- used hedge fund terms. About the Alternative Investment Management Association (AIMA) AIMA is a not-for-profit, international trade association whose objectives are to: - Increase investor education, transparency and promote due diligence and related best practices; and - Work closely with regulators and interested parties in order to promote the responsible use of alternative investments. AIMA's membership includes fund-of-funds managers, institutional investors, hedge funds, prime brokers, exchanges, fund administrators, auditors, lawyers and other service providers. These member companies are based throughout Europe, North America, Asia, Australia, South Africa and the Middle East. AIMA Canada was formed in March 2003 to act as the voice of the alternative investment industry in Canada. AIMA Canada now has over 50 members. For additional information on AIMA Canada contact Lynda Briant, General Manager, AIMA Canada at 416-453-0111 or briant@aima-canada.org. AIMA Canada's Web address is www.aima-canada.org.