What are value assessments?

An Authorised Fund Manager (‘AFM’) must conduct an assessment of value for each share class in each of the funds that it manages at least annually. The Financial Conduct Authority’s (FCA) rules set out a minimum set of components to be considered to determine if funds offer value to investors, and that their costs and charges are justified in this context.

Value Assessments Criteria

The following describes how the Company, as AFM of the Funds, approaches the assessment and the range of factors considered by the Company’s board of directors (‘the Board’) for each component.

Quality of Service

The range and quality of services provided to unitholders in a fund. 

Performance

The performance of the fund, after deduction of all payments out of the fund’s assets as set out in the prospectus, stated over a given time period in relation to its investment objectives, policy and strategy.

AFM Costs - General

In relation to each charge, the cost of providing the service to which the charge relates; when money is paid directly to associates or external parties, the cost is the amount paid to that person.

Economies of Scale

Whether the AFM is able to achieve savings and benefits from the size of the fund. These may relate to the direct and indirect costs of managing the fund’s assets and value of the fund property and whether it has grown or contracted in size as a result of the sale and redemption of units.

Comparable Services

The AFM’s charges and those of its associates for comparable services provided to clients, including for institutional mandates of a comparable size and having similar investment objectives and policies.

Comparable Market Rates

In relation to each service, the market rate for any comparable service provided by the AFM; or to the AFM or on its behalf.

Classes of Units

Whether it is appropriate for unitholders to hold units in classes subject to higher charges than other classes of the same fund with substantially similar rights.

Conclusion

Bringing together all the components of the Value Assessment to determine whether each share class is delivering value to investors.

Value Assessment Reports

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