Mon, May 29, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Study reveals that current practices in fund governance are falling short of ideal

Tuesday, May 08, 2012

Beverly Chandler, Opalesque London: A study published earlier this year examined the data on Cayman domiciled funds to get an indication of governance practices and found that 31% of funds do not have any external directors. 'Fund Governance at a Crossroads: Current Industry Data and Recommended Best Practices’ was compiled by Sound Fund Advisors (SFA), a consultancy firm founded by Jonathan Morgan to provide directorship services to asset management firms and institutional hedge funds.

His paper, referred to in Opalesque, was based on the SEC data from 2,315 Cayman domiciled funds. The study found that 31% of funds have no external directors and for funds that do have external directors, the most common configuration is one internal director and two external directors.

SFA’s study also found that US manager practices lag the UK and other Commonwealth countries where boards are more likely to be diverse and have a majority of external directors. Morgan’s report says: "In cases where funds with a US investment manager have two external directors, 74% have directors that work for the same firm – undermining much of the benefit of having multiple directors".

The study found that most popular professional directors are handling hundreds of funds – the top 40 sit o......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Tudor Jones backs AI hedge funds, Massive hedge fund trades highlight insider buying: GE, Pentair, Tempur Sealy, Apollo Global and more, Hedge funds big wigs are buying consumer and selling tech, here's the stocks[more]

    Tudor Jones backs AI hedge funds From FT.com: Hedge fund magnate Paul Tudor Jones has invested in a brace of artificial-intelligence powered "quantitative" hedge funds, underscoring the increasing acceptance that the industry will need to turn more to technology and away from traditional

  2. Soon hedge fund investors won't bet on a man, they will bet on a machine[more]

    From Forexlive.com: The Wall Street Journal is in the midst of a 17-part series that looks at the rise of quant funds. The AUM and money invested in quant funds still trails traditional asset managers but the gap is closing. What's truly amazing is volume. Quant funds make up 27% of trading vo

  3. Investing - China's HNA wants to invest in Value Partners, Risk parity investors reap rewards from rebalancing act, SoftBank's $100 billion tech fund rankles VCs as valuations soar[more]

    China's HNA wants to invest in Value Partners From Reuters.com: HNA Group has alighted on a logical, if pricey, target in Hong Kong. The deal-hungry Chinese travel conglomerate known for overpaying wants to invest in Value Partners, one of Asia's few sizeable independent asset managers,

  4. Opalesque Exclusive: Investors warm to ESG, but seek standardization[more]

    Bailey McCann, Opalesque New York: Asset managers and asset owners plan to double their investment in Environmental, Social and Governance (ESG) driven strategies over the next two years, according to a survey from BNP Paribas Securities Services. The report, "Great Expectations: ESG - what's nex

  5. Opalesque Roundtable: France's hidden strengths in AI and machine learning[more]

    Komfie Manalo, Opalesque Asia: All nations offer their strengths and weaknesses, but one that is undisputed is the quality of the French scientists, claimed Guillaume Vidal, co-founder of French technology startup Walnut Algorithms at the