Opalesque Industry Update - Stenham Advisors Plc has joined the Hedge Funds Standards Board’s (‘HFSB’) Investor Chapter. |
The HFSB was formed with the goal of creating a framework for promoting integrity, transparency, and good governance in the hedge fund industry. This is achievable only if backed by investors, as investors are the best positioned economic agents to drive adoption of the Standards in the industry. In order to engage investors in this process, the HFSB created its Investor Chapter. The Standards serve the interests of all market participants and of the economy at large.
Jeremy Swindell, Head of Operational Due Diligence at Stenham Advisors Plc said: ‘At Stenham we have always been committed to managers with independent fund oversight and valuation, strong governance, robust risk management processes as well as appropriate levels of disclosure. These are the key objectives of the Investor Chapter and we are proud to foster these standards within our industry’.
The HFSB’s standards cover the following areas:
1. Investment Policy and Risk Disclosure
2. Commercial Terms Disclosure
3. Performance Measurement
4. Disclosure to Lenders/Prime Brokers/Dealers
5. Segregation of Functions in Valuation
6. Hard-to-value Assets
7. Risk Framework
8. Portfolio Risk
9. Liquidity Risk Management
10. Market Risk Management
11. Counterparty Credit Risk Management
12. Control Processes
13. Operational Risk – Trading and Execution; Fraud and Financial Crime Prevention; Disaster Recovery; Model Risk; IT Security; Legal and Regulatory; Disclosure
14. Outsourcing Risk
15. Fund Governance
16. Prevention of Market Abuse
17. Proxy Voting
18. Borrowing Stock to Vote
Stenham Asset Management has been active in fund management for over 25 years focusing exclusively on delivering absolute returns achieving a multiple award-winning track record. It provides market leading solutions for pension funds, charities, family offices and high net worth individuals, including both discretionary portfolios and funds of hedge funds. Its clients are mainly located in the UK and Channel Islands, Europe, Southern Africa, Latin America and Japan. Total assets as at October 2010 are US$ 3.6 billion.