IMA calls on groups to enhance fund charging disclosure

The IMA has called upon groups to enhance transparency on fund charges across all investor-facing documents, as well as giving a more prominent position to the ‘ongoing charge' and provide details of transaction costs.

Instead of just outlining charges in the Key Investor Information Document (KIID), groups should provide further explanation of charges on their websites and factsheets in order to ensure transparency on fund charges within the industry, the IMA said. The trade body has been in discussions with a working group, representing 50% of retail investors' assets under management, and this morning published a consultation paper on the fund charge disclosure guidance. The ongoing charge, which will replace the Total Expense Ratio (TER) in KIIDs from July, should always be displayed instead of ...