Friday, 22 August 2014
Last updated 1 hour ago
Dec 3 2010 | 11:01am ET
As foundations and endowments move more of their money into hedge funds, the CFA Institute is suggesting that they invest less in funds that impose a lockup.
The institute's first Investment Management Code of Conduct for Endowments, Foundations and Charitable Organizations stresses that such institutions should "consider liquidity" in making investments. They should also consider imposing "limitations or restrictions on investments with defined capital lockup periods," even if such funds "meet the investment objectives and risk tolerance of the organization."
The voluntary code was approved by the CFA Institute last month. It seeks to offer a set of best practices for board members, staff and money managers.
Lockups should be avoided because they "may affect future members' ability to effectively manage the financial resources to meet the funding needs of the organization," the institute explained in the 28-page document.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders. Read more…
The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.
The Alpha Pages Editor's Note