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Adviser Compass
Hidden charges?
added by by
Sylvia Ma
posted 27-01-2012 at 16:33
The Investment Management Association (IMA) released an analysis of how trading costs impact on investors' returns. They concluded that hidden charges are a myth.
Some advisers have argued that the transparency of charging structure is to blame. Or that portfolio turnover costs may contribute to the hidden charges.
As reported in Money Marketing:
Bestinvest senior adviser Adrian Lowcock says: “What the IMA seems to be focusing on is whether the funds are expensive and offer fair value, but the issue for investors is they cannot work out whether funds are expensive because they are not told what all their charges are and what exactly they are paying for. Charges are not clear or transparent."
Lift Financial joint chief executive Joel Adams says “...The IMA has calculated the total expense ratio, but you cannot have a flat TER when transaction costs on a year-on-year basis are very different because of portfolio turnover costs. I would be interested to know whether those costs are absorbed or retained by the fund manager.”
Click here to view the original article.
Thoughts?
Some advisers have argued that the transparency of charging structure is to blame. Or that portfolio turnover costs may contribute to the hidden charges.
As reported in Money Marketing:
Bestinvest senior adviser Adrian Lowcock says: “What the IMA seems to be focusing on is whether the funds are expensive and offer fair value, but the issue for investors is they cannot work out whether funds are expensive because they are not told what all their charges are and what exactly they are paying for. Charges are not clear or transparent."
Lift Financial joint chief executive Joel Adams says “...The IMA has calculated the total expense ratio, but you cannot have a flat TER when transaction costs on a year-on-year basis are very different because of portfolio turnover costs. I would be interested to know whether those costs are absorbed or retained by the fund manager.”
Click here to view the original article.
Thoughts?
No Comments
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