HSFB Rebrands to Standards Board for Alternative Investments, or SBAI

Sep 13 2017 | 9:16pm ET

The Hedge Fund Standards Board, known in the industry by the acronym HFSB, has changed its name to the Standards Board for Alternative Investments, or SBAI, as the global standards organization evolves with the industry.  

The change in name reflects a shift in the alternative investment space to include a wide variety of investment strategies operated through vehicles beyond traditional hedge funds, including liquid alternatives, regulated funds, co-investment vehicles, drawdown funds and managed accounts, the SBAI said in a statement. At the same time, investors have moved away from the term “hedge fund” as they classify 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, the organization added.

“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,” said Dame Amelia Fawcett, Chairman of the SBAI, in the statement. “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, to which managers commit when becoming SBAI signatories. 

From an investor perspective, the standards contain core principles that apply to all types of investment management activities, not just those engaged through hedge fund structures, and positions the SBAI to engage more broadly with investors, regulators and the industry.

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. Today, the organization 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.

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