IA proposes 'meaningful' shake-up of fund fee disclosure

The Investment Association (IA) has proposed a new method of presenting portfolio turnover rates, and called for transaction fees to be separated from fixed costs, as part of a push for more comprehensive fund fee disclosure.

In a discussion paper, Meaningful Disclosure of Costs and Charges, the IA has outlined a framework to ensure groups are consistent and clear on the disclosure of funds' implicit and explicit charges. The framework elaborates on the existing Ongoing Charges Figure (OCF) that has been published in Key Investor Information Documents since 2012, and comes ahead of European regulations demanding greater disclosure. In addition to a consistent presentation of ongoing charges, the IA said one-off fees, such as entry/contribution charges, should be expressed separately. Transaction costs ...