Performance matters: Can the IMA solve fund charges conundrum?

clock

The Investment Management Association (IMA) is struggling to find a "perfect" solution to calculating fund performance following the shift to clean pricing, and may have to devise a completely new approach.

The trade body last year held back from releasing new recommendations about how it would calculate fund and IMA sector average returns, stating it wanted to wait for the release of clean and super clean preferentially priced share classes. As a result, all performance statistics are still based on bundled share class performance, with returns reported after the impact of an annual charge which is typically 1.5% per annum for an equity fund. Now, with commission and platform fees stripped out, the starting point for a clean share price is around 0.75%, but the IMA has yet to adjust its...

To continue reading this article...

Join Investment Week for free

  • 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

Join now

 

Already an Investment Week
member?

Login

More on Wealth managers

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

SJP CIO Onuekwusi: Retail investors lack appropriate structure to access private markets

Open-ended structures 'have to work'

Valeria Martinez
clock 01 December 2023 • 2 min read
M&G launches full PruFund range on Wealth platform

M&G launches full PruFund range on Wealth platform

‘Greater flexibility and wider choice’

Valeria Martinez
clock 22 May 2023 • 1 min read
Brewin Dolphin attracts record fund inflows amid strong performance

Brewin Dolphin attracts record fund inflows amid strong performance

Wealth manager drew in £4bn of capital in the year to the end of September

Pedro Gonçalves
clock 24 November 2021 • 2 min read
Trustpilot