Fund objectives working group

The fund objectives working group has been set up to consider ways to improve the usefulness of fund objectives for investors. 

In the final report for our asset management market study we proposed an overall package of remedies to make competition work better in this market and protect those least able to engage actively with their asset manager. We consider that this will increase efficiency, lead to the UK asset management industry being a more attractive place for investors and so improve the relative competitiveness of the UK market.

One of the areas of concerns identified in the market study was the usefulness of fund objectives for investors. The market study found that it is difficult for investors to know what to expect from their fund and it is difficult for investors to assess whether or not their fund is performing against relevant objectives, including those set by the fund manager.

We believe that investors could benefit from greater clarity as well as being better able to compare objectives between similar funds.

In our final report we committed to chairing a working group which would consider ways of providing greater clarity of fund objectives

The group is being chaired by Mary Starks, FCA, Chief Economist and Director of Competition.

The working group members are representatives from:

  • Fidelity International
  • St. James's Place Wealth Management
  • Woodford Investment Management
  • Legal and General Investment Management
  • Standard Life Investments
  • Orbis Investments
  • Columbia Threadneedle Investments
  • JP Morgan Asset Management
  • Link Fund Solutions (formerly Capita Asset Services)
  • Fundhouse
  • Morningstar
  • Financial Services Consumer Panel
  • The Investment Association
  • Association of Investment Companies
  • The Depositary and Trustee Association
  • ShareAction
  • The Wisdom Council
  • ValidPath Limited

Documents

Read the working group's Terms of Reference (PDF).

  1. The first meeting took place on 25 September 2017. Read the working group meeting's summary of discussion (PDF) and a paper setting out the issues covered in the first meeting (PDF).
  2. The second meeting took place on 31 October 2017. Read the summary of the second meeting (PDF) and a paper setting out the issues covered in the second meeting (PDF).
  3. The third meeting took place on 27 November 2017. Read the paper setting out the issues covered in the third meeting (PDF).

Contact

We welcome suggestions from all industry participants on how to improve investor understanding of objectives are currently presented and would like to hear views from stakeholders on this work. Please email: [email protected].