Sun, Mar 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

CalPERS 'strongly endorses' AIMA hedge fund relationship guide

Tuesday, May 31, 2011

Joseph Dear
Opalesque Industry Update - The California Public Employees’ Retirement System (CalPERS) has strongly endorsed a new guide by the Investor Steering Committee of the Alternative Investment Management Association (AIMA), the global hedge fund association, to promote better alignment of interests between institutional investors and hedge fund managers.

“Public pension funds and other institutional investors account for most of the capital within the hedge fund industry,” said Joseph Dear, CalPERS Chief Investment Officer. “This guide by AIMA’s Investor Steering Committee contains recommendations that will enhance our partnerships with fund managers. It’s a good benchmark for this maturing industry.”

The Investor Steering Committee paper, A Guide To Institutional Investors’ Views and Preferences Regarding Hedge Fund Operational Infrastructures recommends, for example, that:

Hedge funds’ investment objectives and strategies should describe the assets to be invested, geographic sectors where the assets may be limited and management trading style;

Hedge funds have predominantly independent boards of directors who are materially free of conflicts with the investment manager;

Hedge fund risk reporting should give investors the necessary tools to understand how much risk managers are utilizing within their portfolios;

Investors should be able to track the performance of hedge funds based on quantitative and qualitative reports that are updated at least monthly; and

Hedge fund managers should give investors the information they need to analyze a fund’s goals, strategy capacities and resources to achieve those goals.

CalPERS is the nation’s largest public pension fund with approximately $236 billion in market assets. It provides retirement benefits to more than 1.6 million State, public school, and local public agency employees, retirees, and their families, and health benefits to over 1.3 million members. The average CalPERS pension is $2,220 per month. For more information about CalPERS, visit www.calpers.ca.gov.

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. M&A - Hedge funds no longer attractive targets for banks, reinsurers, Blackstone buys stake in Christopher Pucillo’s Solus event-driven hedge fund[more]

    Hedge funds no longer attractive targets for banks, reinsurers From Institutionalinvestor.com: Swiss RE, the world’s second-largest reinsurer, is looking to sell its 15 percent stake in Jersey, Channel Islands–based hedge fund firm Brevan Howard Asset Management. Morgan Stanley reported

  4. Opalesque Radio: Threadneedle expects continuing equity volatility this year[more]

    Benedicte Gravrand, Opalesque Geneva: Investors should expect more volatility, which is signaling a "slow moving" top to the market, KKM Financial’s founder and CEO Jeff Kilburg told CNBC on Monday. And this volatility is going

  5. Hedge funds show strong performance of 2.52% so far in 2015[more]

    Komfie Manalo, Opalesque Asia: The hedge fund industry got off to a strong start in 2015 "completely unmindful" of the poor performance last year, according to data provider Preqin. According to Preqin, following a year which saw the average he

 

banner