The International Organization of Securities Commissions, the global body for securities markets regulators, has set out principles to guide hedge fund managers on how to value their investment portfolios eight months after launching a consultation on the issue.

Michel Prada, chairman of the Iosco technical committee, said: "The aim of the principles is to seek to ensure, in particular, that values are not distorted to the disadvantage of fund investors. Iosco believes that investors will ultimately benefit if hedge funds follow these principles."