The Investment Management Association has issued a public consultation on efforts to simplify the costs of units held within funds.
Called the Statement of Recommended Practice for the annual report and accounts of UK authorised funds, the move has been hailed by IMA chief executive Dan Godfrey as a “significant milestone”.
The SORP is calling for all annual reports and accounts of funds to display the performance of each unit held, the charges of each unit for managing the fund and the amount of transactional costs incurred upon each unit.
If the SORP is welcomed and agreed upon by the end of the year, Godfrey expects to see such data being introduced in 2014.
Claiming the SORP has already had “terrific” support from IMA members, Godfrey is hoping this will result in greater investor confidence in funds and the asset management industry.
Godfrey says: “The IMA and the industry as a whole is very conscious of the very important job asset managers do for customers and the economy through effective allocation of capital to the companies that will deliver growth, jobs and tax revenues.
“We can only build that trust and confidence through actions that demonstrate that we mean what we say. The initiative to provide a simple cost number that consumers can trust is a clear example of the industry going well beyond regulatory requirements to deliver consumers something they need in a format that they can actually understand. And it’s examples of actions like these that will build the trust that we all need in the interest of our clients, the economy and the industry itself.”
Godfrey, who took up the role at the IMA in December 2012, has been focusing on clarifying fund costs during this time and in April 2013 suggested a system for outlining costs and performance of a fund on a unit level.