Fears of confusion over IMA fee disclosure plans

Trade body's recommendations to explain charges more fully are unlikely to be adopted across the board.

Some asset managers are unlikely to adopt the IMA’s recommendations about providing extra details on fund charges, as they fear bombarding investors with too much information. The trade body published a consultation paper last week urging fund houses to enhance transparency on fund charges across all investor-facing documents, as well as giving a more prominent position to the ‘ongoing charge’ instead of the AMC. Mark Sherwin, senior adviser at the IMA, argued the AMC does not give the full picture of charges as it does not include audit, depositary or legal fees for example. Mean...