Publications

The Fund Director Selection Process

4 October 2016

Pavilion has been particularly interested to hear the results of The NED Magazine’s recent survey of those involved in the selection process of non-executive fund...

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Cyber Security

6 May 2016

The hot topic of the year, Cyber Security, just got hotter. In fact the cyber fallout from the hacking of Mossack Fonseca has yet to descend as the world is still...

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Board Oversight of FSB/CIF Regulated Entities

1 October 2015

Sitting on the board of a Fund Services Business (“FSB”) or a certified Collective Investment Fund (“CIF”) regulated entity, as a director who is independent...

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The Fund Director Selection Process

Pavilion has been particularly interested to hear the results of The NED Magazine’s recent survey (Oct 2016) of those involved in the selection process of non-executive fund directors.

Further detailed commentary is to be set out in The NED over coming months, but we are happy to see that several key findings resonate very well with Pavilion’s offering, values and raison d’etre.

Specifically the majority of respondents; made up from investors, managers and board influencers, such as lawyers and industry consultants, believe that the most important qualities in a fund director are independence, experience and available capacity.

The vast majority also prefer their directors to be full-time professional directors and, certainly in Europe, want directors from a boutique director business. The top skills and experience found most useful amongst directors are portfolio management and risk management.

Singled out for criticism by the majority is the issue of too few directors being available for selection. Also of concern is that the vast majority rate their current directors as satisfactory, rather than highly proficient. We of course hope that the breadth and depth of the Pavilion offering counters both of these!

In terms of the key take-away message – 94% of those surveyed believe the selection process for fund directors could be improved. Indeed all investors surveyed stated they would like to see the process made more professional and transparent.

As an industry we need to give plenty of thought to how to achieve this. 

 

Bernard Swain 

bernard.swain@pavilionfiduciary.com  

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