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Unit 3.3: Fund Managers, Fees, Performance and Custody

Unit 3.3 covers appointing and monitoring the people who run the money. It takes in the selection of fund managers and the criteria used, the nature of fee structures, the charges that apply in defined contribution arrangements, which the syllabus marks DC only, the measurement of performance against indices, benchmarks and targets, the mechanisms trustees use to monitor investment arrangements and managers over time, and why sound custody arrangements matter to the safety of scheme assets. Charges are live ground for defined contribution trustees because of the value-for-members assessment they have to carry out.

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6 topics
  • Topic 01

    The Selection of Fund Managers

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  • Topic 02

    The Nature of Fee Structures

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  • Topic 03

    The Nature of Charges (DC Arrangements Only)

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  • Topic 04

    Measurements of Performance Using Indices, Benchmarks and Targets

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  • Topic 05

    Mechanisms for Monitoring Investment Arrangements and Fund Managers

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  • Topic 06

    The Importance of Sound Custody Arrangements

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