What is the Assessment of Value?
The Assessment of Value is an initiative brought in by the Financial Conduct Authority (FCA) which requires Authorised Fund Managers (AFMs), such as RLUM, to conduct an assessment at least annually for each of the funds it manages. This assessment considers value across 7 different areas, known as pillars, which have been set by the FCA.
Our Assessment of Value report helps you see our rating of the value our funds are providing to our investors. Our 2022 and 2021 reports combine the 7 areas into three categories.
The Pillars of value
We assess value across the following 7 areas:
- Quality of service - the range and quality of services provided to our investors.
- Performance - the performance of the fund, after the deduction of all charges. Performance is considered over an appropriate timescale in relation to the fund’s investment objectives, policy and strategy.
- AFM costs - the cost of providing the service to which the fund charge relates.
- Economies of scale - whether we can achieve savings and benefits due to the size of the fund.
- Comparable market rates - whether we consider our charges to be reasonable in comparison to our competitors' charges.
- Comparable services - how our charges compare to the charges offered by other funds within Royal London Group.
- Classes of units- whether our investors hold units in appropriate unit classes.
How we've rated value
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Green
No issues have been identified with the fund
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Amber
Our data has captured a potential issue in the value for the fund (or one of its unit classes) and flagged it for review
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Red
Fund might not be providing value and we will let you know any actions we are taking