Sat, May 28, 2016
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. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  4. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year

  5. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit