GLOBAL - Pension plans and hedge fund managers have united to produce the first collaborative guide to investing in hedge funds.
Alexander Ineichen, senior investment officer, UBS Asset Management, said: "Despite the institutionalisation of the hedge fund industry being in full swing for many years, there is still misconception and myth among some institutional investors and their boards, trustees and consultants.
"This report will be designed to clarify what hedge funds really are and, more importantly, are not."
The report should be released in early Q2 and, according to AIMA's investor Steering Committee (ISC), it will focus on best practices for fiduciaries, investment consultants and trustees.
The ISC said the report had been designed to complement the President's Working Group (PWG) Investor Committee's work in the same field.
Emma Mugridge, director, AIMA, commented: "We have long acknowledged that investors are a vital part of the hedge fund industry. This is the first time that they have had such a meaningful educational role to play."
The Californian Public Employees' Retirement System (CalPERS), ABP Fonds de Compensation AVS and Pensionskasse Stadt Zurich have been represented on the committee.
Russell Read, CIO, CalPERS, in his capacity as a member of the PWG, said the two initiatives were complementary: "Nonetheless, it is clear that both initiatives will only be truly worthwhile if they are accepted by, and in turn become common place within the investor community at-large."
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.