Asset managers are under greater pressure than ever before to improve fund charging disclosure and demonstrate progress in this area. However, a number of providers have told Investment Week they need further regulatory clarification (including on research costs) as well as a unified approach across the sector, before they can finalise their propositions.
The recent high-profile decision by Woodford Investment Management to stop passing on research costs to end investors and disclose all fund costs on its website, as well as the release of the latest proposals to separate research and trading costs under MiFID II have thrown down the gauntlet to providers to reveal their hand on charging. There is clearly work to do as the latest research from AJ Bell, based on Morningstar data, shows 66% of 4,773 actively-managed funds available through its platform do not currently disclose a total expense ratio, 3% higher than in 2015, while 4% do ...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
