MICAP unveils updated ranking for VCTs, EISs and business relief

investmentweek.co.uk:

The company has added a ninth score to its ranking system, which takes into consideration fees and charges for every fund.

The firm will not provide a single overall score for each fund, it said, but rather score them across several different areas.

These include the manager, the fund's track record, the level of diversification, the stage of companies targeted, the exit strategy, liquidity, the manager's HMRC procedures and the fund's regulatory status.

A ninth score has also been added to the ranking system, which takes into consideration fees and charges for every fund.

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MICAP explained the score captures the fees outlined in the fund's marketing material, but also include the fees that managers are charging to investee companies, as they are «typically not disclosed».

Mark O'Donnell, head of research at MICAP, said: «We have been thinking long and hard about how we can better support advisers struggling with the implementation of Consumer Duty into their advice process.»

O'Donnell said this new score follows a number of initiatives launched this year, such as the firm's track record score and making fair value assessments and target market statements available on the platform.  

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«Assessing fees in the tax-advantaged market is notoriously difficult for a number of reasons, not least because investment managers are not obliged to publish the fees they charge to investee companies,» he added.

«We are immensely proud of our new fees and charges scores which we hope will bring increased transparency to the sector, and allow advisers to demonstrate their compliance with Consumer Duty with just a few