IMA challenges hidden charges claims
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The Investment Management Association (IMA) says accusations against the fund management industry of hidden charges “do not stand up”.
The asset manager trade body has published analysis it claims disproves hidden charges accusations.
It says charges are available in fund literature, adding that regulation requires their disclosure.
The analysis of 129 funds in the IMA UK All Companies sector from 2009, shows for actively managed funds transaction costs were 0.31%, “of which two-thirds was accounted for by stamp duty”. Tracker funds, it found, had transaction costs of 0.06%.
The trade body argued that transaction costs were “very small for index tracking funds and are on average more than offset by investment returns in the case of active funds”.
Richard Saunders, chief executive of the IMA, says: “People need to save for the long term. They do not need to be scared off by false stories that if they do so they will be ripped off by the industry.
“The IMA’s figures demonstrate clearly that so-called hidden charges which cost investors billions a year are a complete myth.
“If the accusation were true, it would show up in the net returns achieved by investors. But there is no sign of it.”
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