The ongoing events relating to high profile asset managers facing liquidity and governance issues is a timely reminder of the value of robust fund governance. It also highlights the importance of informed research and due diligence when selecting investment solutions and the need for ongoing monitoring.
Such issues rarely present themselves quickly in performance returns. By the time they do then often the risk has catalysed. This brings to fore issues of liquidity risk versus customer redemptions. It is also why we remain vigilant of permitted assets in our governed proposition.
This is why a holistic transparent approach, in our Governed Range, adds value by blending qualitative and quantitative analysis. Selecting a fund goes well beyond simply the individual lead of the fund. The operational support and controls can be as every bit as important as the perceived skill of a fund manager. When much of the market responds only to past performance; a good fund governance framework considers the risks before they emanate and effect returns. This is not easy, it takes time and resource, demands ongoing vigilance and a collegiate approach to sharing information and insights.
To view the latest summary or a list of previous summaries visit our meeting summaries page.
The IAC, RLI, RLAM and our external partners are committed to treating customers fairly and being vigilant to such risks arising. That process becomes transparent through publishing the IAC Minutes and providing advisers with updates on topical issues and key developments.
To find out more about how we run investment governance at Royal London get in touch with your usual Royal London contacts.
JB joined the IAC in February. JB has nearly 20 years’ experience as a selector and is a well-known industry campaigner on fund governance issues. He is the author of the book 'New Fund Order' which addresses technology, sustainability and fund governance issues.