Thu, Mar 30, 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. Opalesque Exclusive: FS Investments launches energy fund[more]

    Bailey McCann, Opalesque New York: $19 billion Philadelphia-based FS Investments has launched a new interval fund which will invest in energy. The FS Energy Total Return Fund is the firm's first closed-end interval fund and will invest opportunistically in energy companies and assets. FS

  2. Opalesque Exclusive: Aberdeen makes the case for the lower mid-market[more]

    Bailey McCann, Opalesque New York: Aberdeen Asset Management has released a new paper focused on lower mid-market private equity. According to the paper, this segment of the private equity market is gaining popularity with private equity investors that are looking for multiple expansion and less

  3. Hedge funds await outcome of French elections, feel pinch on lower oil prices & weak dollar[more]

    Komfie Manalo, Opalesque Asia: Hedge funds felt the pinch of lower oil prices and weak U.S. dollar as the Lyxor Hedge Fund Index was marginally down as of the week ending 14 March, Lyxor Asset Management said in its Weekly Briefing. The Lyxor He

  4. Opalesque Exclusive: Swiss start-up and German fund manager to launch AI hedge fund[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: NNAISENSE, a Swiss start-up that develops artificial intelligence (AI) and machine learning applications, and

  5. Eric Mindich to shutter hedge fund Eton Park after difficult 2016[more]

    Komfie Manalo, Opalesque Asia: Erich Mindich is shutting down his hedge fund Eton Park after losing 9% in 2016 and its assets falling by $2bn to the current $7bn, Reuters reported. Mindich told investors