Advocating for transparency in asset management
Trending in asset management right now: rising client expectations. What has rocked the trust towards the industry for ages are the to-the-roof rewards of top management with no coherence to fund performance as well as hidden fees. Investments have continued to shift from traditional active asset management towards more low cost options, such as passive index funds. An asset owner wants to know – How much am I paying to invest and what is the net value I gain after all direct and indirect costs? Providing exceptional cost transparency to clients means acting with respect. This should be the norm. Those who stay ahead of this trend, continue to attract clients who trust in active analysis and research. In see-through operations. Service. Products with vision.
Fortunately, the industry is on the verge of turning a new page – a see through one. PwC predicts that fee transparency is facing a rapid change on a global scale. Regulations in all levels of investment activities are increasing. The most essential one until now is perhaps MiFID II from last fall, which is an Europe wide directive for investment services that presses towards increasing cost transparency. But what we see having even a stronger effect is the the will to act for the client’s best interests. Trust is core. And it can’t be won over otherwise.
From the beginning of our history we have committed to full transparency in the company’s fee structure.
This means that we disclose exactly how much our clients pay from our services all in all. We are a fee only – no commissions type of company. This policy eliminates hidden costs and incentives. Also, by investing company’s own equity in our funds, we are saying that hey look, our interests are really aligned with yours.
Here’s what we are up to. As far as it’s possible without losing competitive advantage in terms of investment strategies, we disclose all information from our funds. We publish fund performance on our website and send out up to date information about funds to our clients. Key Investor Information Documents (KIID) are required from asset managers by law and we disclose them on our website. We also show the most recent allocation by asset classes for HCP Black and allocation by industries for HCP Focus and Quant. Since 2018, we have published furthermore all the portfolio companies for HCP Focus. As do we communicate our investor returns annually. For a client to have enough information for decision making, all of this is, essential at least.
You can find information about each of our fund’s performance, fee structure and compliance and risk management on our website. Currently, we are working on updating our responsible investing policy. We are also publishing our CSR report of 2019 soon – stay tuned!Book an online meeting Invest
About the Author
Anette Tuomainen works as a Junior Communications Manager at Helsinki Capital Partners as Miika Koskinen, who is responsible for marketing communications and customer experience, is finishing his journalism studies. Anette became excited about HCP for its visionary investing, responsible values and identity attached to cultural actors. From her opinion, these make HCP stand out positively in the investment services industry.