why institutional investors use airas

There has been a sea of change in the last five years in the way institutional investors think about asset allocation. According to the NACUBO-Commonfund Study of Endowments, the percentage of an endowment's fund dedicated to alternative investments (hedge funds, private equity funds, venture funds, real estate, and natural resources) has more than doubled in the last five years. Below is a table showing asset allocation for endowments from their most recent study.

Asset Allocations for Fiscal Year 2011 table

 

This increase in allocation to alternative investments is also true for pension funds and foundations.  Alternative Investments are loosely regulated at best and still have a lack of transparency which should be a major concern for institutional investors.  AIRAS fills a critically important need in authenticating the returns and NAVs of the alternative investments held by your fund.  In addition, AIRAS has been vetted by the major auditing firms as supporting documentation which satisfies the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 820, which values assets at their fair value.

AIRAS provides the client with a comprehensive report on each AI interest in their portfolio which has been vetted by the audit community.