‘Room for improvement’ at corporate governance level on alternative trusts

Alternative investment trusts are falling short in terms of corporate governance and responsible investment disclosure, an analytical study carried out by Quilter Cheviot has found. 

In particular, the trusts fell down on lack of independence, poor oversight, lack of diversity and communication with shareholders, the research revealed. 

Bhavini ‘Bev’ Shah, co-chief executive at think tank City Hive, which is driving transparency and improvements in corporate culture in the investment industry with its ACT framework, commented: “We welcome Quilter Cheviot’s shift in focus. As a standardised framework that captures the corporate culture of investment management companies, ACT can be used by boards of investment trusts regardless of asset class to assess the corporate culture of their current investment advisers who are managing their assets.

“The producer not just the product should be considered as part of governance in order to mitigate risk and understand the environment in which assets are being managed.”

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