IAFE to Hold Meeting on Transparency and Disclosur

CHICAGO (HedgeWorld.com)--The International Association of Financial Engineers will hold a meeting in Chicago on July 29 to discuss and hopefully come to some consensus on what the right level of transparency and disclosure is for hedge funds.

The panelists for the meeting are: Leslie Rahl of Capital Market Risk Advisors; Hans de Ruiter, senior portfolio manager equities at ABP Investments in the Netherlands; Kelsey Biggers, K2 Advisors; David Gordon, MAN Glenwood; and Richard Bookstaber, Moore Capital.

The group said its objective is to have a lively, interactive and relevant debate on the topic of transparency. The meeting will feature a joint presentation from two large Dutch pension funds, ABP and PGGM, on their specific requirements for transparency and disclosure to funds of hedge funds. ABP has gained attention since it plans to invest 2% of its fund or about US$5.5 billion in hedge funds.

The IRC has held several meetings in the United Kingdom and continental Europe with a wide representation of European officials. This year the group is holding follow-up meetings in the United States, Europe and Asia to build on the feedback already received from attendees.

The IAFE also added three European members to its Investor Risk Committee in an effort to expand the committee's activities in Europe. Thijs Coenen , head of risk management at ABP Investments; Leo Lueb, manager, alternative investment strategies at PGGM; and Derek Doupe, director, alternative investments at Frank Russell Capital joined earlier this year.

There are two main issues among European institutional investors. Many are concerned with the transparency and disclosure of funds of funds, since the majority of pension funds invest in hedge funds of funds, according to the group. The second issue is that of aggregation of information across hedge funds, which is in line with what recommendations that the IRC released last year. European IRC members believe that hedge funds should be reclassified according to their salient asset classes, exposures, and other relative measures.

The committee's main initiative is to establish hedge fund disclosure guidelines that can be agreed upon by both investors and hedge funds.

The group will have at least one new release of the guidelines in 2002. It also plans to add Asian steering group members in the near future. Then each chapter of the IRC will be able to address the issues that are specific to their marketplace on top of the overall industry issues that are common to all.

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