FCA's Sier pans new methodology to calculate alternative investment fund fees

Chair of FCA cost disclosure working group

Chris Sier, chair of the Financial Conduct Authority's institutional disclosure working group, has criticised a new methodology to calculate and compare the fees of alternative investment funds as "fallen short" of including all costs.

A working group set up by the Standards Board for Alternative Investments (SBAI) last year to study fees in the sector has come up with a Standardised Total Expense Ratio (STER) to compare fees across alternative investment funds. The calculation aggregates expenses and management fees charged to, or incurred by, a fund and also includes the costs of research bundled with dealing commissions, said the SBAI in a statement. 7IM boosts alternatives exposure to record levels amid political uncertainty It excludes incentive fees, which will fluctuate as a function of performance, and tr...