IMA chief: Why funds cannot disclose dealing costs

The transaction costs incurred by fund managers are “inseparable” from the trades themselves, making it difficult to accurately report trading costs, according to the Investment Management Association (IMA).

IMA chief executive Richard Saunders has told Investment Adviser - in a video interview to be published later today - that he is confident all IMA members will sign up to the voluntary code the fund management trade body has proposed to promote cost transparency.

“Trading costs are inseparable from the impact on performance of doing those transactions,” Mr Saunders said.

“It only really makes sense to look at transaction charges alongside the impact of the transactions themselves.”

But the IMA has been involved in a heated debate with Alan Miller’s investment boutique SCM Private, which is insisting that all fund costs including dealing fees be clearly disclosed to investors.