The institute, which is based at Cass Business School, has published a white paper calling for asset managers to disclose allcosts which are ultimately borne by investors.
Research cited in the paper suggests that concealed costs can make up to 85 per cent of a fund’s total transaction costs. The
remainder is taken up by visible costs such as commissions, taxes and fees.
Professor David Blake, Director of the Pension’s Institute, said: “No good reasons have been put
forward for why all the costs of investment management should not be fully disclosed. They are after all genuine costs borne by the investors.
“There is little point in requiring transparency where the reported measure for ‘costs’ does not include all of the costs.”