The Alternative Investment Management Association (AIMA), a global hedge fund and alternative investment industry association, has responded to a call from a US Assistant Secretary of the Treasury on hedge fund valuations.
Addressing the World Hedge Fund Forum in Connecticut on Tuesday, Assistant Secretary of the Treasury for Financial Markets Anthony Ryan called for fund valuations that meet sound industry practices and form part of each fund’s risk management process.
AIMA says it fully agrees with this sentiment and will shortly be launching its Guide to Sound Practices on Hedge Fund Valuation, which will address the issue of developing clear policies in relation to the valuation process.
“Mr Ryan has touched on a vital topic of interest to the whole hedge fund industry,” says AIMA director Emma Mugridge.
“Valuation risk is recognised by hedge fund managers. For the benefit of the funds as well as their investors, it is important that hedge funds employ sound valuation practices. This is why AIMA will be shortly publishing this major guidance work on valuations, building on the original study that we released in 2005.”