Columbia Threadneedle Investments has found that its UK funds provide ‘Good’ value overall, having published its first value assessment report on the funds in its UK range.The report covers 57 funds and 435 share classes, and assesses value according to seven criteria set by the Financial Conduct Authority (FCA).
The assessment, carried out and approved by Columbia Threadneedle’s UK funds board, aims to provide greater transparency for customers and sets a rigorous standard in assessing the funds. It uses a consistent and repeatable methodology and process that will enable year-on-year comparisons in future reporting. The FCA criteria against which the funds and share classes have been reviewed cover the breadth and quality of services, the cost of providing these services and the performance of each fund against its stated objectives and targets, amongst others.
The assessment gives each fund and share class a rating of one to four stars, from ‘Poor’ to ‘Outstanding’, with a score of four stars deliberately set as a stretch target. The UK fund range achieves an overall ‘Good’ score, reflecting a three-star rating.
The report also provides share class level information on performance, charges and service value, which combine to give an overall star rating for each share class in a user-friendly ‘What Car?’ style table.
Nick Ring, chief executive officer for EMEA at Columbia Threadneedle Investments, comments: “I welcome the introduction of value assessment reporting, an important step forward in providing greater transparency across all funds and asset managers in the UK. I believe it will ensure improvements across our industry, including clearer and more specific fund objectives and targets, greater focus on performance after fees and improved transparency regarding costs and charges, all of which enable customers and their advisers to better measure and compare outcomes across funds and asset managers.
“At Columbia Threadneedle Investments, we are acutely aware of the importance of the service we provide, helping our customers accumulate wealth and protecting and growing their financial assets for the long-term.
“I believe we have set a rigorous standard in assessing our funds and am pleased this Value Assessment Report concludes that, overall, our funds provide good value. It also, however, highlights areas where we can do better, and we have identified remedies and are taking action to improve value for customers going forward.”