A Financial Conduct Authority (FCA) review of fund managers’ Assessment of Value (AoV) reports has revealed widespread failures in the quality and content of the documents, with the regulator warning it will intervene if firms do not improve. In the report published today (6 July), the FCA said it expects “more rigour” from fund managers’ […]
A review of 18 fund managers between July 2020 and May 2021, covering different business models and sizes, found most had not implemented Assessments of Value (AoVs) arrangements that met FCA standards. view full publication
Fund managers falling short on assessing the value of their funds – FCA Read More »
Baillie Gifford has published a value assessment report for its Ireland fund range, in a move that could increase pressure on rival firms. The report has been prepared in response to a July 2019 letter from the Irish regulator to fund board chairs “requiring” them to carry out a “regular assessment of fund performance and
Baillie Gifford publishes Irish value report, upping pressure on peers – Ignites Europe Read More »
Columbia Threadneedle has started a review into fund fees with a specific focus on the way economies of scale are passed on to investors, following its second annual value assessment. view full article
Columbia Threadneedle embarks on fee review – Ignites Europe Read More »
The UK financial watchdog says some fund boards have misinterpreted its rules for value assessments and are failing to analyse the profitability of their product ranges. Since September 2019 UK authorised fund managers must carry out an assessment of the value their funds are delivering to investors each year, evaluating seven criteria including performance, costs
FCA pushes asset managers to assess profitability – Ignites Europe Read More »
‘Schroders is starting to apply its approach to UK assessments of value across all its European and global fund ranges, according to its global head of product.’ ‘…Influenced by the approach of the UK Financial Conduct Authority, regulators in the EU have been intensifying their scrutiny of “the pricing process” and “undue costs”, which may
Schroders expands value review to European funds – Ignites Europe Read More »
Fitz Partners found that for retail investors invested in about 600 fund products, 51% of the total number of products with a remaining legacy retail class in place, had been moved to cheaper classes. The research also revealed that the discounts received by investors after they had been moved ranged from 24% to 67%, with
UK asset managers have cut at least £120m (€139m) in ongoing charges following the introduction of reforms that require firms to assess the value of their funds. New research by Fitz Partners, a specialist fee research firm, shows that investors in 600 funds have recently been moved to lower charging share classes. view full article
UK firms slash £120m in charges following value reforms – Ignites Europe Read More »
Cut-throat price competition among tracker fund providers is fuelling the war on fees across Europe’s investment industry with active managers joining their passive counterparts in axing fees to attract new investors and retain existing clients. Fees for exchange traded funds have fallen by 30 per cent over the past three years while index-tracking mutual fund
Fee war escalates across Europe’s fund industry Read More »
Liontrust’s directors have claimed that its fixed administration charge follows industry best practice, despite other firms increasing their use of variable charges in order to pass on cost savings to investors as fund assets rise. view full article
Liontrust’s claims of best practice for fees under scrutiny – Ignites Europe Read More »