Hedge fund investors are more concerned with transparency and liquidity than they are with performance, SEI and Greenwich Associates said in a survey report, titled “The Era of the Investors” New Rules of Institutional Hedge Fund Investing.”

With institutional investors far savvier and demanding than ever, hedge fund managers must institutionalize responses to transparency demands and demonstrate clear sources of alpha to retain and gain assets, SEI said.

However, nearly 80% of survey respondents said they have no plans to change their hedge fund allocations in the next 12 months, and 15% even intend to increase their hedge fund investments.

But service has risen to the forefront, with more than 70% of investors now requesting more detailed information from managers than they did a year ago—be it on counterparties, leverage, positions, valuation methodologies, compliance structure, technological capabilities and support, or credentials of the investment team.

And investors are increasingly seeking better pricing, with 20% now negotiating fees better than the standard “2 and 20” for individual hedge funds and “1 and 10” for hedge funds-of-funds.

“Investors remain committed to hedge funds, but that commitment comes with increased expectations,” said Phil Masterson, managing director for SEI’s investment manager services division. “The balance of power has clearly shifted, and managers must meet the growing demand for transparency and increase their focus on operational effectiveness if they want to be successful in this ‘era of the investor.’”

Investment firms can request a copy of the whitepaper at: http:www.seic.com/newrules.

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