The first wave of Assessment of Value (AoV) reports has represented a significant effort for fund groups and has already been hailed as a success for investors, following share class transfers, the closure or merger of poor value funds, and fresh scrutiny of consistently underperforming vehicles.
However, heading into the second year of AoVs, regulatory experts expect further action on poor value funds, with the inclusion of different value metrics such as sustainability, active management and the appropriateness of benchmarks. All fund managers offering funds in the UK have been publishing their first AoVs since the fourth quarter of last year, following the action taken by the Financial Conduct Authority in the wake of its 2018 Asset Management Market Study. The process requires asset managers to prepare a report for fund boards, which, with the aid of independent non-execut...
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