Investment - Articles - Standardisation is key for asset management industry


Pitmans Trustees stated that standardisation of language and reporting amongst asset managers will be vital to the future optimisation of the industry, and better decision making by schemes.

 Richard Butcher, Managing Director at PTL, said: “The asset management industry is not optimal in its current state. One of the reasons for this is that there is no standardisation of language or methodology when it comes to charges or reporting on performance and costs. As a consequence it is almost impossible to compare asset managers or funds, creating an unnecessary barrier to an open and efficient market.

 “It is often challenging for trustees and governance bodies to get clarity on the costs and structures that exist within investment funds, thereby making it difficult to establish those costs and legal liability. This gets worse as funds become more complex.”

 Butcher added: “And whilst an ambition for increased disclosure is worthy, it is pointless unless the disclosure itself is standardised. By increasing standardisation, the market will take great strides to improve efficiency, better governance and better decision making.”
  

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