Lobbying by pension funds for independent valuation of hedge funds has fuelled a hiring spree for back office staff, globalpensions reports.
PricewaterhouseCoopers' study Infrastructure: From Cost to Benefit, said valuing fund assets, particularly illiquid holdings, was "a critical area where investors and regulators desire objectivity".
As a result, due diligence by investors such as pension funds was becoming "more rigorous, more intrusive and more time-consuming, seeking to understand the precise roles in valuing assets, as well as details of service level agreements".
Europe's forthcoming Alternative Investment Fund Managers Directive stipulates independent valuation, while allowing in-house valuation if valuation teams are independent of portfolio managers.
Meanwhile, America's SEC expects independent judgement be exercised in valuing and pricing portfolio assets, PwC said. "Having a strong and robust infrastructure is becoming a prerequisite for raising assets," the firm added….
http://www.globalpensions.com/global-pensions/news/2080385/pension-fund-lobbying-sparks-hedge-fund-hiring-spree
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