AIMA to publish guidelines for fund of hedge funds managers

The industry body’s guide – which is due for publication in early 2009 - will focus on areas including risk management, disclosure to investors, valuation, management of conflicts of interest and other operational issues.

AIMA said the guide would be a practical business tool for fund of hedge funds managers – but would also seek to provide relevant information for investors such as pension schemes.

Deputy chief executive officer and steering group member Andrew Baker said: "There are currently no dedicated guidelines for fund of hedge funds managers yet the majority of new institutional investors tend to favour this investment route, rather than investing directly in hedge funds.

"With established sound practices in place for hedge fund managers and on various hedge fund-related topics, there is a desire to document managers’ activities and responsibilities. The guidelines will demonstrate both the amount of work achieved in this area to date as well as the industry’s continued focus on documenting and enhancing its practices."