The SORP proposes all annual reports and accounts should contain tables that set out details of the performance per unit, the charges per unit for the operation and management of the fund, the amount per unit for all transaction costs, and the amount per unit for all transaction costs incurred when the manager buys and sells holdings on the fund’s behalf.
The industry body is also encouraging fund managers to break down all charges to show tax and dealing costs and even the research and execution costs in a bid to eliminate the opacity of the charges, which is generally caused by the long supply chain.
In his blog, chairman Daniel Godfrey said: “We need to ensure that no reasonable observer can accuse the industry of of ‘hiding’ charges and that our clients are well informed about total cost and performance.
“We’ve had terrific support for this initiative from our members and external stakeholders and I hope that, if the details are agreed for the SORP by the end of the year, we will start to see the data being introduced in the course of 2014.”
Godfrey also proposed the next step from the SORP would be the development of methodologies to provide better and clearer ways of explaining what a client can expect from a fund so they can better judge their level of satisfaction with a fund.
The idea was originally touted at the end of June, find out more here.
