- within Real Estate and Construction topic(s)
Fund governance is undergoing rapid change, shaped by evolving investor expectations, regulatory pressures and new technologies. Our recent Women in Evolving Fund Management session explored how increased female representation is reshaping the director's role into one centred on stewardship - supporting a wider shift toward more progressive, socially representative and higher performing governance.
We also looked at how the Channel Islands are responding to these trends, with Jersey and Guernsey positioning themselves through flexible regulation, strong governance networks and growing ESG and venture capital communities to support this next phase of industry evolution.
The session was hosted by Kirsten Faichnie and Charlotte Gonçalves, with contributions from Tatiana Collins, and guest speakers Rebecca Booth and Vanessa Neill, who bring extensive multijurisdictional board experience across both regulated and sustainability focused structures.
Key takeaways:
The director's remit is expanding
Across self managed funds and manager entities, non executives are moving beyond traditional monitoring into hands on stewardship. That often means:
- Shaping communications (websites, annual reports) and investor messaging - engaging directly on reputation and stakeholder issues
- Overseeing RFPs for key external advisers
- Proactively horizon scanning regulatory change and anticipating the second order effects on strategy, risk and disclosure
Boards increasingly value curiosity, judgement and cross domain literacy (sustainability, technology, culture) where formal rules often lag market practice.
Social responsibility is embedded in board decisions -not a bolt on ESG exercise
Boards are integrating stakeholder impact directly into strategic decision making. This includes careful consideration of disclosure clarity, accessibility for retail investors and the responsible use of AI -particularly around bias, transparency and accountability.
We discussed AI enabled board effectiveness tools that can materially improve internal accountability and self assessment. Biodiversity, natural capital and nature related risks are also rising quickly on board agendas. For impact and sustainability focused strategies, the stewardship lens is naturally even sharper.
Board composition, diversity and long term alignment
Progress on gender diversity at board level is real, but not yet mirrored in fund management and C suite roles across the wider industry. A major(and often under appreciated)driver of further change is the significant transfer of wealth into the hands of women, already underway (albeit by demographic default rather than design):
- By 2030, women are projected to control US$34 trillion in the US alone, reshaping client expectations and board level conversations.
- Globally, inter and intragenerational transfers are expected to total around US$83 trillion over the next 20 - 25 years, with women significant beneficiaries; boards that fail to reflect the perspectives of future asset owners risk misalignment with investor expectations.
Practical solutions are emerging to broaden perspectives and build the next generation of board talent. The EPOC (Empowering People of Colour) Board Fellowship places senior professionals of colour as participating observers on FTSE 350, private company and not for profit boards for 12–18 months, under NDA and without remuneration or legal liability -an innovative, sector agnostic programme that deepens governance capability while diversifying the talent pipeline.
This is crucial because it demonstrates how structural pathways can create a more representative, resilient and future ready governance landscape.
A different lens for emerging and early stage managers
For first time and emerging managers, governance expectations are not lower, but the way they are met must be proportionate and evolutionary. Increasingly, non executives are acting as advisers even before formal appointment—helping managers navigate regulatory landscapes, contextualising how the broader ecosystem fits together and making introductions that draw on their accumulated social capital.
The Channel Islands' response
The Channel Islands continue to translate global trends into practical, well regulated local solutions.
In Guernsey, an expanding VC community - supported by networks of angel investors and individuals with deep technology expertise - is helping to attract and sustain innovation. The registration of the island's first Natural Capital Fund underscores its commitment to nature positive and biodiversity driven investment strategies.
Regulators in both islands are also engaging actively with emerging topics such as digital assets, with ongoing consultations reflecting a willingness to evolve frameworks in step with market developments.
Legal advisers, administrators and other service providers are similarly shifting from purely technical roles into those of trusted strategic partners - horizon scanning regulatory change, acting as connectors and offering cross jurisdictional insight. Effective governance often hinges on these relationships: open communication, timely input and constructive challenge.
Conclusion
- Proactive stewardship is the job description. Boards are expected to lean in on strategy, culture, technology and sustainability, not just sign off.
- Know your future client. As wealth shifts toward women and next gen owners, and the number of female investors are increasing, governance that reflects their priorities - clarity, transparency, impact - will be a competitive advantage.
- Build the pipeline of non-executive directors deliberately. Fellowships and development programmes (e.g., EPOC) identify advisors that could fulfil future NED roles and can expand perspectives and create investible, governance ready talent.
- Use the ecosystem. Leverage the Channel Islands' regulatory flexibility and specialist networks willing to share their expertise, especially in growth and ESG related strategies, to pilot innovations that stand up to scrutiny.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
