|
|
The SBAI originated in June 2007 when a group of leading alternative investment managers formed the Hedge Fund Working Group to develop industry standards in areas such as disclosure, valuation, risk management, governance and shareholder conduct. In January 2008, the Hedge Fund Standards Board was established as a non-profit organisation to oversee and further develop the Standards. Today, the SBAI is supported by approximately 200 alternative investment managers and institutional investors with $3 trillion in aggregate capital, and is governed by a board of major investors and managers.
The change in name reflects the evolution of the alternative investment industry, in which managers increasingly offer their investment strategies through a variety of vehicles beyond “hedge funds” – including liquid alternatives, regulated funds, co-investment vehicles, drawdown funds and managed accounts. At the same time, investors have moved away from the “hedge fund” term as they classify and integrate a diverse array of alternatives strategies by underlying asset class, return profile, market exposure or liquidity. Further, many of the SBAI’s standards and guidelines, while developed for alternatives managers, have broader applicability across asset management.
Dame Amelia Fawcett, Chairman of the SBAI, says: “Over the last decade, the SBAI has developed and implemented a model that is unique in the investment industry. This is a neutral platform bringing together investors and managers as equal partners in solving issues and developing standards of practice. As we enter the SBAI’s second decade, the platform is as relevant as ever, given the industry’s complex array of investment strategies and vehicles and the importance of meeting investor requirements in a highly competitive environment. We are pleased to see continued growth in industry support, particularly over the last couple of years, from both the institutional investor and manager communities globally.”
The practices and solutions developed by the SBAI are documented in the Alternative Investment Standards (the Standards), which managers commit to by becoming SBAI signatories. Additionally, the SBAI publishes industry guidelines and resources under its “Toolbox”, complementing its standard-setting activities. Also the SBAI has established working groups to study Total Expense Ratios and Factor-Based Investment. The SBAI expects to publish results of those working groups later in 2017.