TAKING THE REINS

Sustainable and satisfactory relationships demand building long-term trust in addition to short-term differentiation

Figure 10

Risk-based Performance over fees • Obligation to outperform • Necessary to align fees to performance and investor interests • Innovative fee structuring could result in a better take up.

Governance • Ensure conflicts of interest between the investor and the asset manager are identified and prevented • Necessary to ensure independent verification of controls and procedures.

R i s k - b a s e d p e r f o r m a n c e o v e r f e e s

G o v e r n a n c e

PwC - CACEIS Assurance Model

Transparency • Full transparency in terms of risks, performance, holdings and fees • Tailor reporting toward a more transparent and explanatory framework.

Operational strength • Demonstrate ability to deal effectively with market and business challenges to ensure sustainable performance • Uphold expertise and advisory role • Ensure IT systems and processes are solid and adapted to the nature and volume of activities.

O p e r a ti o n a l s t r e n g t h

T r a n s p a r e n c y

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