Today's best practices in risk management require that a fund employ independent risk service providers and that these service providers play important roles in risk-related decisions.

When considering investing in a leveraged fund, the company should not invest in the fund unless the fund's gross leverage ratio is above the peer group average.

It is crucial to assess the fund's valuation policy, and in general if more than 10% of asset prices are based on model prices or broker quotes, the specialist should recommend against investment in the fund.