IMA's Godfrey cautions on ‘misleading' cost comparisons

Publishing a fund's single-year transaction costs alongside total expense ratios could mislead investors, according to Daniel Godfrey, new CEO at the IMA.

Godfrey, who takes over from Richard Saunders as chief executive at the Investment Management Association this week, said fund costs should be expressed as a percentage of assets rather than through specific figures. “I favour total expense ratios, and do not agree with the proposition that everyone should have an annual statement telling them the cost in pounds, shillings and pence,” he said, speaking to Investment Week. SCM Private’s ‘True and Fair’ campaign, among others, has called for a single figure conveying the total cost of investing.  The IMA released its own enhanced dis...