Support My Efforts By Visiting The Advertisers

Disclaimer

This is a personal blog. The opinions expressed here represent my own, not those of my employer and is not intended to malign any religion, ethnic group, club, organization, company, or individual.

Call for more transparency in fund management

>> Wednesday, September 16, 2009

A committee set up by the Investment Management Association of Singapore (IMAS) is calling for an alignment of standards to help fund managers in their risk-assessment processes.


A new IMAS survey on risk and performance practices among fund managers found that two-thirds of the 22 respondents have independent risk units, but use largely different standards to assess risk.

The findings are significant because the 22 fund houses that responded represent 80 per cent of the assets under management in Singapore, said Mr Justin Ong, advisor to the Singapore Performance and Risk Committee.

In the wake of increased claims of mis-selling of financial products to both institutional and retail investors, the committee said that there is heightened concern among investors, who are demanding more transparency about risk controls.

There is already a global best practice in the form of the Global Investment Performance Standards (GIPS), a set of standardized, ethical principles that provide investment firms with guidance on how to calculate and report investment performance. One of these standards includes preventing cherry-picking the best performing accounts to show investors, as this can be misleading.

In the survey, 57 per cent of the respondents are compliant with GIPS, and 24 per cent are working towards being compliant. The committee is now focusing on getting more fund houses to comply.

This standards were first adopted by Singapore in 2005, but some institutions here have not kept up by verifying these standards in the recent years, said Mr Ong, adding that "it's seen as a nice to have".

0 comments:

Disclaimer

Privacy

The owner of this blog does not share personal information with third-parties nor does the owner store information is collected about your visit for use other than to analyze content performance through the use of cookies, which you can turn off at anytime by modifying your Internet browser’s settings. The owner is not responsible for the republishing of the content found on this blog on other Web sites or media without permission.

Blog Comments

The owner of this blog reserves the right to edit or delete any comments submitted to this blog without notice due to;

1. Comments deemed to be spam or questionable spam
2. Comments including profanity
3. Comments containing language or concepts that could be deemed offensive
4. Comments that attack a person individually

Terms and Conditions

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

This policy is subject to change at anytime.

About This Blog

To promote the education of individuals for the need to have a healthy lifestyle and wealth management through proper financial planning, particularly in investments.




Top Blogs


Awards

There was an error in this gadget

Top Sites

  © Blogger templates Sunset by Ourblogtemplates.com 2008

Back to TOP