Monthly Archives: February 2013

28Feb 13

Renaming of Absolute Return Sector an Absolute Farce

Commenting on the IMA’s review of the Absolute Return Sector Gina Miller, founder of the True and Fair campaign and co-founder of SCM Private said:

“It has taken the IMA nearly two years (643 days – 26th May 2011 to 27th February 2013) to come up with a single word – targeted. So now the ‘absolute return sector’ will become the ‘targeted absolute return sector.’

Under the new definition ‘Funds in this sector may aim to achieve a return that is more demanding than a “greater than zero after fees” objective.’ Is there much point in a fund not aiming to deliver positive returns?

Posted By: True and Fair, 5:43 pm

27Feb 13

‘Absolute return’ sector gets watered-down new name in ‘farcical’ change

The absolute return sector is to be renamed to reflect the failure of its funds to achieve their goal of preserving investors’ capital. One investor called the change an “absolute farce”.

To read the full article on the Telegraph, please click here.

Posted By: True and Fair, 5:25 pm

20Feb 13

Commenting on IMA Director of Public Policy, Jonathan Lipkin’s, statement that pension charges need to be made simple and transparent to ensure employees do not opt out of auto-enrolment, Gina Miller founder of the True and Fair Campaign said:

We welcome Jonathan Lipkin’s statement that pension charges should be made simple and transparent, something The True and Fair Campaign has been very vocal about for the past year, however the IMA’s belated Damascene conversion needs to be backed by action.

“While it is encouraging to see that the IMA, under new leadership, is recognising that fund fees and charges need to be revealed upfront to investors, nothing has changed as far as consumers are concerned and identifying the cost of pension and investment products remains an all but impossible task.

“Nothing short of 100 per cent transparency on all fees and costs, through one single number, in pounds and pence is acceptable.

“In the face of continuing industry inertia, we believe that statutory regulation is the only solution to protect consumers. If the IMA truly believes in transparency we believe they should back statutory regulation to force 100 per cent disclosure on all fund fees and costs as the only fair way to create a transparent, level-playing field for consumers and the financial services industry.

Posted By: True and Fair, 4:59 pm

19Feb 13

Commenting on F&C’s decision to levy a new annual charge on investors in its equity-based Child Trust Fund (‘CTF’), Gina Miller founder of the True and Fair Campaign said:

This is another example of the UK investment management industry acting in a shamelessly anti-consumer and opaque manner. It’s totally wrong that children are locked into expensive and poorly performing funds and that the only alternative is to switch to another CTF provider, which may face the same problems.

“One of the overriding principles of the FSA is supposed to be ‘treating customers fairly’. Surely, this is a perfect opportunity for the new FCA to rule that there is a default index or tracker product that customers can switch into, and that this cost is borne by existing providers?

“This is a major embarrassment for our industry and there should be immediate steps by policy makers and regulators to remedy the situation before we lose another generation of investors. Failure to do so will be acting against the consumer interest and will further undermine trust in the financial services industry.

“The Government needs to undo its policy and the FSA/FCA should make providers who are not able to deliver on their commitment return the money to investors or set up a structure for all the orphan money to be managed effectively and cost efficiently.”

The True and Fair Campaign (www.trueandfaircampaign.com) continues to call for all fund fees and costs to be disclosed, with 100% of the costs reported through a single number, via a common format used across the fund management industry. That way, savers will be able to genuinely compare performance and charges between different funds.

Gina Miller has children who have CTFs, and believes that children should not be subject to higher-level fund charges for CTF funds.

Posted By: True and Fair, 4:57 pm

18Feb 13

This Is Money: What are you forking out in investment fees? Designers of new ‘True and Fair’ calculator claim they can tell you

Do you want to know how much in fees is being creamed off your investments? A new calculator will be launched shortly to tell you exactly that – not just as a percentage of your overall investment, but in pounds and pence too.

To read the full article on This Is Money, please click here.

Posted By: True and Fair, 12:37 pm

11Feb 13

Jeff Prestridge: Calculator will reveal the real cost of your investment funds

The True and Fair Campaign is stepping up its efforts to get asset management companies to disclose the real costs of investing money in their funds.

Next month it will launch a ‘true and fair’ calculator that will allow investors to see the likely future impact of charges on their portfolios of funds.

To read the full Daily Mail article, please click here.

Posted By: True and Fair, 10:16 am

11Feb 13

FTfm: Welcome signs of glasnost on fund costs

Progress is being made on fund fees and transparency, says Jonathan Eley.

To read the full article at FT.com, please click here.

Posted By: True and Fair, 10:09 am

07Feb 13

New Statesman – Hidden charges: the next big scandal for banks?

The high cost of banks’ lack of transparency.

 

To read the full article on the New Statesman, please click here.

Posted By: True and Fair, 5:08 pm

07Feb 13

FTSE Global Markets: SCM Private to launch online cost calculator

SCM Private will launch an online calculator in a bid to highlight the ‘true’ costs facing UK-based investors. Set for release next month, the tool plans to reveal the full effects of charges on their investments as a monetary amount instead of a percentage.

To read the full article on FTSE Global Markets, please click here.

Posted By: True and Fair, 11:12 am

07Feb 13

The Financial Times: MPs support campaign for fee transparency

UK parliamentarians expressed their support for the “True and Fair” campaign for an end to hidden costs and charges in the UK savings and investments industry at a reception at the House of Commons on Tuesday.

Chris Flood writing for The Financial Times – to read the full article please click here.

Posted By: True and Fair, 11:04 am