AIMA Responds to IOSCO Valuation Principles

Date: Monday, June 25, 2007
Author: AIMA News

The Alternative Investment Management Association (“AIMA”), the leading global hedge fund and alternative investment industry association, has issued its response to the International Organization of Securities Commissions (“IOSCO”) on its ‘Consultation Report on the Principles for the Valuation of Hedge Fund Portfolios’.

This follows AIMA’s publication of its Guide to Sound Practices for Hedge Fund Valuation in March 2007 – which issued 15 recommendations on valuation. AIMA is pleased to acknowledge that the IOSCO document has accurately captured all key issues raised in AIMA’s Guide.

AIMA registers its view that, given the nature of the subject and the significant progress already made by the industry – and noting that ‘no one size fits all’ -regulation would neither be appropriate nor helpful.

Emma Mugridge, Director of AIMA said: “The industry has worked diligently during the last four years to analyse valuation issues. AIMA will continue to work closely alongside IOSCO and other regulatory bodies worldwide on valuation and other issues as the hedge fund industry continues to evolve”.

1.         About AIMA
As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has 1175+ corporate members worldwide, based in 47 countries.

Members include leading hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting services and fund administrators. They all benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals and its excellent reputation with regulators, worldwide.

AIMA is a dynamic organisation that reflects its membership’s interests and provides them with a vibrant global network.

AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website www.aima.org

2.         AIMA’s Guide to Sound Practices for Hedge Fund Valuation
AIMA issued the Guide in March 2007. It contains 15 Recommendations on Governance, Transparency, Processes and Pricing Methodologies. The Executive Summary is available at AIMA’s website.

3.         AIMA’s letter to IOSCO
The submission to IOSCO is available at our website.