AIMA launches enhanced version of due diligence questionnaires

AIMA has launched an improved series of illustrative due diligence questionnaires for the selection of managers and service providers.


Dermot Butler, Deputy Chairman of AIMA and Chairman of the AIMA Sound Practices Committee, said: "The 2002 versions of the questionnaires have been distributed to thousands of companies around the world. Each questionnaire has now been carefully reviewed and enhanced by senior industry practitioners on this Committee"


He added: "Our aim was to meet the needs of the industry and its investors more appropriately by adding new questions that reflect the improvements in industry practices."


These are specific questionnaires for:
* Hedge Fund Managers
* Managed Futures Fund Managers/CTAs
* Fund of Hedge Funds Managers
* Hedge Fund Administrators (for Managers)
* Hedge Fund Administrators (for Investors)
* Prime Brokers.


In addition, a questionnaire for the selection of a custodian will be issued by year-end. The questionnaires are available only to all AIMA member companies and institutional investors on AIMA's confidential database.  Any other company wishing to obtain the questionnaires is encouraged to join the Association.


The following is a summary of the areas comprehensively covered under each questionnaire:



Hedge Fund Manager


Investment Manager Information
Fund Information
Data Overview
Investment Strategy
Risk
Investment Research
Investor Service/Reporting
Executive & Trading
Compliance
Legal
Anti-Money Laundering Policy
Insurance
Business Continuity
Administration



Managed Futures Fund Managers


Background
Performance & Statistics
Methodology
Portfolio & Accounts
Execution & Trading
Risk Management
Research
Administration, Operations and Fees
Legal



Fund of Hedge Funds Managers


Background
Product Information
Performance
Asset Allocation/Style Allocation
Due Diligence/Manager Selection
Portfolio Construction
Risk Management
Administration/Operations
Client Information/Reporting
Compliance/Legal



Hedge Fund Administration for Managers


Details of Administrator
Ownership
Documentation
Size of Operation/Group
Management
Client Relationship Management
Auditors
Operations
Equalisation
Compliance Checks
Anti-Money Laundering Policy
Insurance
Regulatory Body/Authorisation
Payment and Signatory Procedures
NAV Calculation
Reconciliation
Front or Middle Office Services
Fund Accounting System
Reporting
Fund Systems Audit
Legal and Tax
Corporate Secretarial and Directors Services
Fees
Business Continuity/Disaster Recovery
General - staff



Hedge Fund Administration for Investors


Details of Fund
Details of Administrator
Ownership
Documentation
Size of Operation/Group
Management
Client Relationship Management
Auditors
Operations
Equalisation
Compliance Checks
Anti-Money Laundering Policy
Insurance
Regulatory Body/Authorisation
Payment and Signatory Procedures
NAV Calculation
Reconciliation
Fund Accounting System
Reporting
Fund Systems Audit
Legal and Tax
Corporate Secretarial and Directors Services
Business Continuity/Disaster Recovery
General - staff



Prime Brokers


Organisation - Description
Insurance
Set Up Procedure
Stock Loans
Financing
Leverage and Risk Management
Other Products
Technology
Trade Executive and Processing
Custody
Legal and Compliance
Schedule of Costs
Assistance to Start-up
Business Continuity.


 

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