Standards Board for Alternative Investments: A Guide to Best Practices

The Standards Board for Alternative Investments (SBFA) is a non-profit organization that aims to promote best practices in the alternative investments industry. It was established in 2012 to address the lack of standardization in the industry.

To achieve its goal, the SBFA has developed a set of standards that cover various aspects of alternative investments, including fund governance, risk management, and investor reporting. These standards are based on industry best practices and are regularly reviewed and updated to reflect changing market conditions.

The SBFA's standards are designed to be flexible and adaptable to different types of alternative investments, such as private equity, hedge funds, and real estate. This allows investors and fund managers to choose the standards that best suit their specific needs and circumstances.

By adopting the SBFA's standards, fund managers can demonstrate their commitment to transparency, accountability, and good governance, which can help to build trust with investors and improve their reputation in the industry.

The Standards Board for Alternative Investments (SBAI) is a neutral, standard-setting body for the alternative investment industry.

The SBAI works to foster a framework of transparency, integrity, and good governance to simplify the investment process for managers and investors.

In February 2023, LFIS renewed its partnership with the SBAI, showing its commitment to supporting the organization's mission.

LFIS operates in conformity with the Alternative Investment Standards, which is a key aspect of its partnership with the SBAI.

By doing so, LFIS is able to work within a framework that prioritizes transparency, integrity, and good governance.

The SBAI's efforts aim to make the investment process more straightforward for both managers and investors.

The Standards Board for Alternative Investments emphasizes the importance of transparency in investment practices.

To achieve this, they recommend that investment managers clearly disclose their strategies, risks, and performance metrics.

This transparency helps investors make informed decisions and build trust with their investment partners.

The Board also encourages investment managers to regularly review and update their investment strategies to ensure they align with their stated goals and objectives.

Having clear investment goals is essential to making informed decisions about your money.

Investment goals can be long-term, such as saving for retirement, or short-term, like buying a house.

A good rule of thumb is to set specific, measurable, achievable, relevant, and time-bound (SMART) goals.

For example, a SMART goal might be to save $100,000 in 10 years for a down payment on a house.

A clear understanding of your risk tolerance is also crucial when setting investment goals.

If you're risk-averse, you may want to focus on conservative investments like bonds or CDs.

On the other hand, if you're willing to take on more risk, you may be able to earn higher returns with investments like stocks or real estate.

Ultimately, your investment goals should align with your values and priorities.

For instance, if you value financial security, you may prioritize saving for retirement over other goals.

Responsible investment practices are crucial for aligning investment words and actions. This is because investors have a significant impact on the environment, society, and the economy.

Investors can start by considering the environmental, social, and governance (ESG) factors of a company. Research has shown that companies with strong ESG practices tend to outperform those without.

Avoiding companies with poor ESG records is a good place to start. For example, companies involved in deforestation or human rights abuses should be avoided.

Investors can also promote responsible practices by engaging with companies. This can be done by attending shareholder meetings and voting on resolutions that align with ESG goals.

Incorporating ESG considerations into investment decisions can lead to better long-term outcomes. A study found that ESG-focused funds outperformed traditional funds over a 10-year period.

Investors can also use their influence to push for positive change. By investing in companies that prioritize ESG, investors can send a strong message to other companies to follow suit.

Staying informed and up-to-date on ESG issues is essential. This can be done by following reputable sources and attending industry events.

The Standards Board for Alternative Investments (SBAI) is a neutral, standard-setting body for the alternative investment industry.

The SBAI works to foster a framework of transparency, integrity, and good governance to simplify the investment process for managers and investors.

LFIS has a partnership with the SBAI, which it renewed in February 2023.

LFIS is proud to support the SBAI and to operate in conformity with the Alternative Investment Standards.