The Alternative Investment Management Association (AIMA), has released its new 'Guide to Sound Practices for Asian Hedge Fund Managers'.
The Guide provides an overview of the many issues that should be considered by a hedge fund manager when establishing a business (though it is not intended to set out definitive standards or an exhaustive list of requirements), including the following:
* Creating and Managing a Hedge Fund Business: Including management and controls, finance, compliance and employees
* Investment Process and Portfolio Risk Management: Including investment dealing
* Portfolio Administration and Operational Controls: Including trade procedures, non-trading transactions, managing service providers, and information systems and business continuity
* Raising Capital and Investor Relations: Including marketing.
The Guide for Asia is adapted from the Guide to Sound Practices for European Hedge Fund Managers, created in 2002. The European Guide has been downloaded over 70,000 times since its launch.
Goldman Sachs International has co-ordinated and managed the development of the European and Asian Guides.
The first was developed with a core group of investment managers, prime brokers, hedge fund administrators, consultants, lawyers, accountants, an investor and AIMA.
Florence Lombard, Executive Director of AIMA., said: "The Asian hedge fund market has been growing rapidly over recent years at estimates of well over 200% since 1999. It offers investors important sources of capacity. AIMA has seen this through the creation of Chapters in Hong Kong (established 1999), Japan (established 2001) and Singapore (established 2004). Today, nearly a quarter of our global membership is based throughout the Asia-Pacific region. This Guide is timely and informative and we extend our thanks to all those who have been involved in its development, particularly Goldman Sachs in Europe and Asia."
Sam Stubbs and James Shipton of Goldman Sachs Prime Brokerage in Asia and co-ordinators of the project jointly state that "the guide will help new entrants to the Asian hedge fund industry and existing managers adopt sound business practices, better weather market conditions and more importantly reduce the risks of costly mistakes.
The guide allows them to benefit from the sound practices and experience of other well-established and successful hedge fund managers and industry participants in the region as well as internationally".
The Guide can be downloaded at www.aima.org