Reuters- More than half of pension funds will require the hedge funds they invest into comply within three years with best practice standards recently proposed by a hedge fund industry group, according to a KPMG survey on Monday.
In January the Hedge Fund Working Group (HFWG) — a group of leading hedge fund executives from firms such as Man Group EMG, Brevan Howard and Gartmore — published a set of standards on governance and disclosure in a bid to head off critics of the $2.5 trillion (1.3 trillion pound) industry’s opacity.
The measures covered controversial areas such as the valuation of complex financial assets, where the HFWG proposed that valuation should ideally be carried out by an independent third party, or if that was not possible, then someone in-house who was not the portfolio manager.
