• When investors perform due diligence over prospective and current investments, related party transactions and fees are often key focus areas, particularly over “hidden fees” or debatable fees which may not be apparent pre-investment.

    From a documentation perspective, governing documents are often vague or silent on how non-standard costs should be treated. As such, it is often left to the manager’s discretion to decide whether certain costs could or should be borne by the manager or by one or a combination of funds, managed accounts or other vehicles. This in turns may lead to conflicts of interest over fee allocation amongst different relevant mandates, especially if some are in promote/carry positions and some are under-water.

    On 15th and 16th August 2019, ANREV hosted two round tables in Singapore and Hong Kong respectively, where a number of managers, fund administrators and advisors sat together and shared their experiences to identify current industry practices and learn from their peers in how they are meet investor demand for fairer and more transparent expense policies.

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    ANREV Professional Standards Committee would like to thank the participants who have engaged in the discussion as well as Paul Walters from PwC who kindly helped to facilitate the discussion and wrote this paper.

    To learn more about the committee please click here. For further information please contact [email protected]

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