The Association of Professional Fund Investors (Apfi) has issued a qualified response to the UK Investment Association paper on “Meaningful Disclosure of Costs and Charges“, which has outlined moves the fund industry could make to introduce more transparency around these issues.
Apfi, which represents fund selectors across Europe, said that it generally agreed with the notion of greater transparency on fund fees enabling fairer competition between fund houses, but added that there is a particular caveat in that any solution requires minimising conflicts of interest.
It said that transparency measures “benefit fund investors over the long term and align interests between fund managers and fund buyers.”
However, it added that: “To mitigate any conflicts of interest arising, Apfi believes that fund investor bodies – such as Apfi – should be properly involved in these discussions rather than ostensibly driven by trade bodies representing fund manufacturers. Apfi believes that a harmonised cross-border approach to fee regimes is essential for healthy global fund competition and fairness to fund investors in different markets. This encourages avoiding localised approaches to solve legacy issues – such as pensions reform.”
Jon Beckett (pictured), UK research lead for Apfi wrote: “We agree with some of the high level principles set down in the IA paper. However this question cannot only be considered in the UK context and we believe the interests of fund investors – globally – need to be protected as part of any consultation.”
Apfi’s response is based on its role representing professional fund investors. Set up in 2011 its aims include promoting the voice and role of its members in the asset management industry. Further information is available at www.profundinvestors.com.