“We believe the results of this research will be a useful resource for hedge fund managers and investors,” said Segun Aganga, chairman of the AIMA research committee, pointing out that the survey was an ongoing exercise and represented a first important step to establishing a dialogue on 'best practice' in the industry.
To achieve the desired transparency, AIMA recommends the documentation and regular review of practical pricing and valuation practices, with explicit descriptions of their potential limitations. The association also believes any decision to use a pricing model rather than a market price in determining asset value should be justified, while NAV calculations should be subject to “appropriate” checks and balances to ensure sufficient transparency.
AIMA’s global survey was answered by 76 institutional investors, managers and service providers such as prime brokers and administrators, combined with a further 16 qualitative interviews.
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