LONDON, 1st February 2006 – The Alternative Investment Management Association (‘AIMA’) – the leading global hedge fund and alternative investment industry association – has greeted warmly the European Commission’s announcement of its Expert Group on Alternative Investment Funds. The Commission yesterday revealed the make-up of two expert groups that will help examine how the framework for investment funds in the EU can be improved.

The 15-strong Expert Group on Alternative Investment Funds was selected on the basis of nominations received from 13 European-level associations, including AIMA. The Commission called on European trade associations to nominate candidates in December 2005, following the publication of their Green Paper on investment funds.

AIMA recognises the growing regulatory and business interest in the development of hedge fund distribution across European borders. AIMA has a strong regulatory role to play on behalf of the hedge fund industry and has a stated objective to work closely with global Regulators to achieve that aim.

Florence Lombard, Executive Director of AIMA commented: “We firmly believe that the European Commission has recognised the crucial role that the hedge fund community at large has to play in the ongoing debate on investment funds.”

“The Expert Group on Alternative Funds provides not only a potent blend of industry expertise and geographical location, but it also demonstrates the willingness of the European Commission to call upon key industry stakeholders.”

The expert group will meet a number of times until June 2006, when they will produce a report on their findings. This report will also be discussed with regulatory bodies and other stakeholders.

These results will then become part of the European Commission’s White Paper on investments funds which is scheduled for publication in October 2006.