IA consults on costs and disclosure: IA has published a paper on the "Meaningful Disclosure of Costs and Charges". This outlines IA's contributions to this area over the last three years and provides proposals for discussion. The paper specifically:
- proposes a new methodology for a consistent basis of calculation for portfolio turnover rate;
- presents a framework and template for the disclosure of charges and transaction costs created by IA; and
- undertakes an extensive examination of all the explicit and implicit costs incurred when investing in a fund and sets out how they should be disclosed to the end investor in a meaningful way, including differentiating known historic costs from estimated future costs.
IA invites comments. (Source: IA Publishes Paper on Meaningful Disclosure of Costs and Charges)