Fund governance encompasses many issues including boardroom effectivity and outsourcing, and it has numerous touchpoints within ESG. This report visits many of these issues.
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CACEIS provides high-quality support for clients’ day-to-day business needs. We also have a responsibility to leverage our market knowledge and resources to help our clients understand and prepare for the future environment in which they do business.
Governance manifests in several ways within asset management – but however it manifests, governance is a crucial issue if the industry’s economic usefulness is to be realised and respected.
We asked the question: What value do you believe independent directors bring to the industry? Respondents were allowed to tick as many answers from the six provided as they liked (fig 1).
The legal and accountancy professions are historically male-dominated, although there are many women working in these professional sectors today and increasingly gaining seniority.
Asset management firms could face reputational damage and accusations of hypocrisy if the expectations they express for corporate behaviour through votes cast at AGMs are not matched by their own practices.
Back to the topic of fund governance – this time with a focus on fund services and compliance. In the cross-border European world of UCITS funds, third-party management companies (known as outsourced ManCos) play a crucial role in regulatory compliance and governance.
Cost pressures from regulation is one of the most difficult challenges for asset management firms. Supporting the increasing demands of regulation comes at a time of unprecedented pressure to reduce fees.