Standardization the key to optimization
April 19, 2017

Standardization of language and reporting amongst asset managers will be vital to the future optimization of the industry, and better decision making by schemes, according to Pitmans Trustees (PTL), an independent trustee and governance services provider.

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 standardization 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.

"And whilst an ambition for increased disclosure is worthy, it is pointless unless the disclosure itself is standardized. By increasing standardization, the market will take great strides to improve efficiency, better governance and better decision making."





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Standardization of language and reporting amongst asset managers will be vital to the future optimization of the industry, and better decision making by schemes, according to Pitmans Trustees (PTL), an independent trustee and governance services provider.

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 standardization 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.

"And whilst an ambition for increased disclosure is worthy, it is pointless unless the disclosure itself is standardized. By increasing standardization, the market will take great strides to improve efficiency, better governance and better decision making."



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