A new survey by Centaur Fund Services highlights a number of important points for the alternative investment sector.The survey was carried out in September/October 2011 with the results published in November. The survey targeted three key groups: fund managers, fund investors, and fund directors. The survey gathered responses from over 200 respondents across the three groups with representatives being located in Europe, the US and Asia.
We are keen to stress a number of key findings to hedge fund managers, investors and directors. Among the key findings are:
Investors and directors are concerned about administrators not being accountable for their work. It means that they will refuse to invest, refuse to stand as director or will change administrators when they are not satisfied.
Their biggest areas of concern are around valuation and proof of asset existence.
They are also troubled by the poor quality of staff and the way functions are organised in some administrators.
Investors and directors are also troubled by poor controls and technology in place in some administration firms.
Investors also want administrators to produce independent transparency reporting verifying where assets are held, the extent to which securities are being individually priced, etc.