Board benchmarking

There’s an easy way to improve fund governance: benchmark boards. Benchmarking means investors can see where funds are ranked in comparison with others in their peer group. Funds with poor boards would soon improve.

As regular readers of The NED will be aware this publication has devoted much time and effort looking into the composition of fund boards across jurisdictions over the last 18 months. With regard to the benchmarking initiative it is worth repeating what we said a number of times last year, following our analysis of alternative fund boards in Cayman, Guernsey, Ireland, Jersey and Luxembourg: there is considerable variance in standards of fund board composition. Benchmarking will likely reduce this level of variance by improving composition at weaker boards.

To read more on this story see the March issue of The NED.