Form PF Reporting

Regulatory reporting for hedge and private equity funds that are subject to registration under Title IV of the Dodd- Frank Wall Street Reform and Consumer Protection Act

This is the regulatory record of—among other things—performance, counterparties and risk exposures.

• Significant data requests requiring consistent methodologies and asset class definitions across multiple counterparties
• Quarterly or annual reporting requirements depending on fund type and size
• First wave filers (US$5 billion or more in regulatory assets under management) filed August 29, 2012

A singular example of complex reporting. Consider numerous other schema that need to be harmonized including other U.S. regulatory filings, e.g., Form ADV, CPO-PQR (dual SEC/ CFTC registrant CPOs could satisfy certain CFTC filing requirements by filing Form PF with the SEC), and Foreign Account Tax Compliance Act (FATCA), as well as other non-U.S. standards, e.g., Alternative Investment Fund Managers Directive (AIFMD) or the Qualified Domestic Limited Partner (QDLP) scheme in China allowing non-Chinese hedge funds to raise Chinese assets etc.
www.sec.gov

Open Protocol Enabling Risk Aggregation standard (OPERA)

Launched in August 2011 by an industry group as a means to align transparency reporting formats and methodologies to benefit investors; co-chairs Albourne Partners and Thomson Reuters

Designed to assist hedge funds to report risk information in a standardized fashion

OPERA-maintained risk and performance templates for exposures, VaR and sensitivity analysis

www.theopenprotocol.org

Institutional Limited Partners Association (ILPA)

Standardized reporting templates for investor reporting and transparency; includes capital calls, distribution and standardized quarterly reporting templates

Enables GPs and LPs to communicate more efficiently by reducing processing times and ongoing monitoring expense

Voluntary but required by some investors: capital call and distribution notice templates, investment thesis, investment structure, capitalization, financial results, valuation methodology, risk assessment, etc.

www.ilpa.org

International Private Equity and Venture Capital Valuation Guidelines Board (IPEV Board)

Investor reporting guidelines intended to be applicable across the entire range of private equity funds—broadly defined and inclusive of venture capital funds

Allows managers to globally harmonize information presented to investors through a principle-based approach focusing on content instead of format

• Voluntary
• Directly comparable investment information (name, currency, total commitments, term, investment period, hurdle rated, carried interest calculation)
• Historical performance completely and fairly represented
• Guiding principles of relevance, transparency, consistency, and accuracy

The European equivalent to the IPEV board is the European Private Equity and Venture Capital Association (EVCA)
www.privateequityvaluation.com

Industry Benchmarking: HFRI indices, HedgeFund.Net, Preqin and Barclays Indices

These schema provide a level of transparency for alternatives sub-segment investing

As the alternatives industry matures and becomes more institutional, investors will look to alternatives to play specific roles in their respective portfolios. These schema will allow for better stewardship (e.g., macro, relative value, etc.).

• Allows investors to track relative performance by region and strategy type
• Also allows for views on asset flows by strategy and manager size

www.hedgefundresearch.com
www.hedgefund.net
www.preqin.com
www.barcap.com