What do investors really think of AoV reports?

The FCA was scathing last week when it accused fund managers of ‘falling short’ in assessing the value of their funds.

Managers are required to carry out annual Assessments of Value (AoVs), and the FCA has given the industry up to a year and half to improve what it deemed to be unsatisfactory reports, following a review of 18 fund management groups.

Among a litany of accusations, the FCA said some INEDs did not fully understand the AoV rules, that some higher-charging unit classes were excluded from assessments, and that where a manager’s investment style was cited as the reason for under-performing the market this wasn’t communicated in customer facing literature.

There is much work for managers to do to satisfy the regulator.

But what do consumers think of AoV reports?

Boring Money’s latest Investor Tracker data shows 19% of retail investors say they have read at least one report. And of those that had read an AoV, 58% said the reports were ‘somewhat useful’ and 32% said they were ‘very useful’.

Commenting on the findings in both the Telegraph and the Times Boring Money CEO, Holly Mackay said: Despite the regulator’s forensic focus on costs and also margins, the retail customer has a much broader view of value, including other factors alongside performance and charges, such as transparency, trust, ESG and communications. 

“More work needs to go into Assessment of Value frameworks and reports but if we listen to the end customer, this needs to focus on a broad set of inputs, not solely cost and performance.”

Get in touch with the team to find out more about our data services and the insights we can provide to firms preparing AoV reports.

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