Last week saw the launch of two important sets of documents on the issue of Assessment of Value/Value for Money from the Investment Association and the CFA Society of the UK.
Last Friday, the CFA Society of the UK hosted a luncheon for some its membership in the City to release a slim document which addressed some important issues on Value for Money, not just how it pertained the UK mutual fund managers, but also more generally covering UK-based DC pension funds and UK insurance workplace pension schemes.
In fact, one of the important takeaways of the CFA’s document entitled Value for Money: A Framework for Assessment was that a number of regulatory requirements exist in relation to VfM … and whilst these requirements are similar, they are not entirely consistent, and could benefit from some harmonisation. The CFA Society’s paper goes on to highlight a suggested framework, but is quick to add that the 13-page document is not intended to be a technical guide on how to comply with any specific VfM requirement, adding that the Investment Association (IA) is a good source for such guides.
And very happily for all of us who care about these sorts of things, earlier in the week, the IA did just that. UK Fund Boards has it on very good authority that there wasn’t just one document, but apparently three. We know this because Philip Warland, longstanding industry stalwart and a corporate governance maven, who also happens to be an adviser to the IA, told UK Fund Boards in a wide-ranging video interview: “If you are a member of the IA, make sure you’ve seen their papers. There are three extremely good papers examining what’s required and what has happened in the United States which is a very good backdrop.”
Philip added that his views is that over time, probably 2 or 3 years, there will develop best practice which may not be immediately obvious and there will be different ways of approaching this and. “I certainly think that the more forums there are where people can come together and discuss what does work and what doesn’t work, this will be really helpful.” Philip, we heartily endorse that view!
The full video interview with Philip Warland will be available on ukfundboards.com in the near future, and whilst UK Fund Boards will continue to address issues and views around the Assessment of Value topic, for more details on the papers referenced above, please contact the CFA Society of the UK and the Investment Association, respectively