Investors look for transparency in fees. The Institutional Limited Partners Association published a Fee Reporting Template Last Week to encourage uniformity in the fee disclosures being made to private fund investors.
The aim of this proposed template is to encourage increased uniformity in the fee disclosures the fund managers provide to limited partners in private funds. ILPA proposes two benefits:
- Providing limited partners with an improved baseline of information that lends itself to more streamlined analysis and informed internal decision making
- Reducing the compliance burden on fund managers, who face a variety of bespoke template formats
Only two fund managers have signed on as endorsing the template.
Already, the California controller is pitching the SEC to mandate the template as a reporting obligation.
Fees in all investments have disclosure problems. How much are you paying in fees for your mutual funds? I, like many of you, don’t know. Most investors look at overall performance. Low fees are great, but not if it’s for low performance.
Private funds are obviously different form mutual funds. It’s not easy to sell and re-invest the money.
Sources:
- NEW ILPA Fee Reporting Template
- Download the ILPA Fee Reporting Template
- Download the ILPA Fee Reporting Template Guidance Document (.PDF)
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ILPA publishes fee reporting template by Nicole Miskelly in Private Funds Management
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California Controller calls on SEC to mandate ILPA template by Katherine Bucaccio in Private Funds Management
