Wide differences in standards

Fund governance review special
The NED has analysed the composition of 885 fund boards from 50 of the largest alternative managers. There is a surprisingly wide variety in standards. Some managers have put together competent boards, but by no means all have.

The NED’s analysis indicates that asset managers fall into three broad categories when judged on their fund governance capabilities. There are approximately 20% who have put together really competent fund boards for their investors. Then there are about 15% who do not appear to have given the governance of their funds much thought. This 15% is noticeably below the industry average. In between these two groups are the majority of around 65% whose boards have a variety of strengths and weaknesses.

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