IMA to introduce benchmark for turnover costs

The Investment Management Association is planning an industry standard for how fund groups disclose turnover costs, it has emerged.

The trade body - which is poised to merge with the ABI's investment affairs unit - will propose a framework by which groups disclose extra costs incurred when investing, such as the spread between buying and selling stocks. IMA CEO Daniel Godfrey (pictured) told the FT the measure would add to an already-announced plan for fund groups to disclose charges to consumers in ‘pounds and pence' rather than basis points. "What we are going to do next is agree on a standardised basis for the calculation of portfolio turnover rates," he said. The IMA could express the figures as a percentag...