Board composition: whose funds are best?

From this autumn asset managers whose funds meet the criteria will be listed in The NED as being top rated category for fund governance. We believe that those asset managers who have made the effort to put together really competent, well-above average, fund boards deserve recognition, especially as there can be a wide gap between the best and the worst fund boards.

Many fund boards look alike but there are also a lot of unexplained, and probably unacceptable, differences too – including from funds in the same strategy and jurisdiction.  The NED hopes that by recognising the best it will encourage others to gravitate up towards a higher standard of board composition.

As well as seeking to improve managers’ fund board composition standards, The NED is doing this for investors. Not once in the last 10 years has The NED ever spoken with an investor, including those with a real interest in fund governance, that has a clue where the funds that they are allocating to rank in terms of fund board composition, vis-a-vis their peers.

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