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Mandates will flow to transparency: Survey

A survey of institutional investors has found that most expect to place greater emphasis on the importance of transparency when allocating money to fund managers.

Global Palladium Fund surveyed 100 institutional investors and wealth managers in the UK and Germany.

Overall, over the next two years 94% of survey respondents said they expect institutional investors, wealth managers and family offices to demand greater levels of transparency and reporting from the fund managers they use.

This will impact how institutional investors allocate money.

Some 42% of those surveyed anticipate a dramatic increase in investment outflows from funds with lower levels of reporting and transparency, and a further 32% believe there will be a slight increase.

The other major trend identified by the survey is pressure on fees. A third (33%) of survey responders said there will be a dramatic increase in the value of switching from expensive funds into those with more competitive free. A further 51% think there will be a slight increase in switching to cheaper funds.

And 77% say the focus they themselves place on trying to reduce fees will increase.

"There is a growing number of funds available to investors, who at the same time are becoming more sophisticated in what they want from fund managers," Global Palladium Fund chief executive Alexander Stoyanov said.

"Having very competitive fees and high levels of reporting and transparency are now just as important for fund managers to have as their stock selection and investment theme strategies.

"We offer the lowest charges of any ETPs listed in Europe that focus on the metals we invest in, and by being the first ETC provider to use blockchain technology to record bar information into distributed ledger technology, we are providing an extra layer of security and proof of ownership to the Issuer."

Read more: Global Palladium FundAlexander Stoyanov