The Danish Investment Fund Association (Investeringsfondsbranchen, IFB) has announced that its members have agreed new best practice recommendations for those managing local funds.
The new recommendations are intended to encourage the industry in its delivery of good products to investors, and ensure that the performance of local funds are maintained relative to funds offered elsewhere in Europe.
IFB notes that while prevailing legislation determines ‘what’ managers may do, it does not provide guidance on ‘how’ they may best do so.
Jens Jørgen Holm Møller (pictured), chief executive, said: “The new best practice recommendations are a practical tool for managers of investeringsforeningerne [local funds] when the are looking to develop the fund’s business model. The end goal is to create the best possible products for investors.”
The industry started its work in January 2014 in response to a 10-point programme of initiatives put forward by the Danish FSA (Finanstilsynet) in 2013. Both the regulator’s proposals and IFB’s recommendations would affect the approximately 760,000 individual Danes who own investment funds, and their invested AUM of some DKK1.7trn (€228bn). The average level of assets per investors is slightly over DKK0.5m, IFB said, adding that there are also corporate and pension sector investors, who together serve nearly all Danes.
The full recommendations published by IFB are available here (in Danish): Best practice september