Sun, Nov 19, 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. Middle East - Saudi-Iran war would create this domino effect of global disaster, Saudi billionaires said to move funds from region to escape asset freeze[more]

    Saudi-Iran war would create this domino effect of global disaster From CNBC.com: Events appear to be spinning out of control in the Middle East, and the threat a Saudi-Iranian war is looking increasingly credible. Make no mistake, an out and out conflict between the two nations would be

  2. Paradise Papers - Robert Mercer's effort to avoid taxes appears in Paradise Papers, Tycoon made $41m from 'people's fund', Oxford and Cambridge 'investing millions of pounds offshore', Paradise Papers reveal[more]

    Robert Mercer's effort to avoid taxes appears in Paradise Papers From Therealnews.com: The Guardian has reported that conservative billionaire and Trump backer Robert Mercer "appears as a director of eight Bermuda companies in the Paradise Papers," the trove of documents reviewed by the

  3. Wall Street hedge fund veteran hits highs with copycat tactics[more]

    From FNLondon.com: A Wall Street veteran who has made big returns for wealthy clients by piggybacking on the strategies of well-known hedge funds is taking his novel approach to stock-picking to institutional clients. Dixon Boardman, chief executive of $2.5bn fund of hedge funds Optima Fund Ma

  4. Launches - Eaton Vance, Oaktree to launch diversified credit NextShares fund, FIM launches Nordic AI-powered fund[more]

    Eaton Vance, Oaktree to launch diversified credit NextShares fund Eaton Vance Management, a subsidiary of Eaton Vance Corp., announced the expected mid-November launch of Eaton Vance Oaktree Diversified Credit NextShares, a new Eaton Vance-sponsored exchange-traded managed fund. Eaton Va

  5. Outlook - Gundlach's stock market warning comes true[more]

    From Bloomberg.com: Jeffrey Gundlach has been warning something's got to give. Based on the past two days, looks like we have our answer. Stocks fell around the world a second day and high-yield bonds headed for a fourth straight loss, resuming a historic correlation that the hedge fund manager on W