AIMA’s Investor Steering Committee Publishes New Guide for Institutional Investment

Date: Tuesday, May 31, 2011
Author: AIMA News Release

The Alternative Investment Management Association (AIMA), the global hedge fund association, has published a guide for investors and managers, written by members of AIMA’s Investor Steering Committee (ISC), that reflects preferences and priorities for institutional investors and investment allocations.

The aim of the guide is to outline investor views, expectations and preferences on a variety of important operational and organisational issues, which are increasingly the focus of due diligence reviews and discussion among investors and fund managers.

The authors of the guide are Kurt Silberstein (CalPERS), Luke Dixon (USS), Michelle McGregor Smith (BA Pension Investment Management), Andrea Gentilini (UBP), and Adrian Sales (Albourne Parners). AIMA’s ISC is jointly chaired by current AIMA Chairman Todd Groome and former AIMA Chairman Christopher Fawcett of Fauchier Partners.

AIMA Chairman Todd Groome said: “AIMA is very pleased to sponsor this paper, outlining institutional investor views regarding a number of important areas of operational and organisational ‘infrastructure’, which are receiving increased industry focus. AIMA has supported and provided publications related to a wide variety of educational guides and best practices throughout its 20-year history. In light of the ongoing ‘institutionalisation’ of the hedge fund industry and the growth of Institutional Investor participation, we hope that this paper, authored by some of the most influential investors and advisors in the industry, will be a useful reference guide to both investment managers and investors in hedge funds.”

The paper, entitled A Guide To Institutional Investors’ Views And Preferences Regarding Hedge Fund Operational Infrastructures, begins with a discussion of “Governance”, authored by Luke Dixon of Universities Superannuation Scheme (USS), which outlines the fundamental importance of good governance, key constitutional documents and the role of boards of directors.

The second section focuses on “Risk” and is authored by Andrea Gentilini from Union Bancaire Privee (UBP). It focuses on a variety of reporting practices concerning the investment portfolio, operations, counterparties and liquidity.

The third section, covering “Investments”, is authored by Kurt Silberstein of the California Public Employees Retirement Scheme (CalPERS) and discusses performance reporting, terms and conditions, control of assets, and transparency.

The fourth section addresses “Capital” and is authored by Michelle McGregor Smith of British Airways Pension Investment Management. It discusses issues related to a firm’s ownership structure, investor relations, and related sales and marketing activities.

Finally, the fifth section, “Operations”, authored by Adrian Sales of Albourne Partners, focuses on a variety of operational issues, including valuation, business continuity planning, compliance and relationships with service providers.

For media enquiries, please contact Christen Thomson, AIMA’s Director of Communications. Tel: +44 (0)20 7822 8380; Email: cthomson@aima.org

About AIMA

As the global hedge fund association, the Alternative Investment Management Association (AIMA) has over 1,200 corporate members (with over 5,000 individual contacts) worldwide, based in over 40 countries. Members include hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms, investors, fund administrators and independent fund directors. 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 members’ 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, http://www.aima.org.

About AIMA’s ISC:

ISC members are as follows ( * denotes co-authors of the paper)

Committee Members 2011

Mark Anson: (Oak Hill Investment Management LP)

Eric Breval: (Fonds de Compensation AVS)

Luke Dixon*: (Universities Superannuation Scheme)

Christopher Fawcett: (Fauchier Partners)

Cathy Iberg: (UTIMCO)

Gumersindo Oliveros: (Kaust Investment Management Company)

Robert De Rito: (APG Asset Management)

Kurt Silberstein*: (CalPERS)

Michelle McGregor Smith*: (BA Pension Investment Management Ltd)

Vera Kupper Staub: (Pensionskasse Stadt Zurich)

John Stevens: (General Motors Asset Management)

Jacob Tsang: (Hong Kong Jockey Club)

Tom Kehoe: (AIMA)

Andrew Baker: (CEO, AIMA)

Todd Groome: (Chairman, AIMA Ltd)

The other co-authors of the paper, Andrea Gentilini (UBP) and Adrian Sales (Albourne Partners), are members of AIMA’s Research Committee.