Despite industry and regulatory calls for fund groups to enlighten investors by referring to their funds’ ongoing charge figures rather than to the less indicative annual management charge, it appears asset managers and their PRs are yet to get the message.
With about 2,348 fund launches per week, Wells Street Journal research has shown 98 per cent of press releases fail to include an OCF and 93 per cent of PRs actually think OCF is an American hip-hop artist.
On an almost daily basis, journalists at WSJ sister-title Fundweb have been forced to pursue fund group representatives for correct figures, only to hit a wall of ignorance.
WSJ is now appealing for all fund groups to ensure every fund launch contains the full charge disclosure, which they are legally required to include on their key investor information documents.
In the event this warning is not heeded, the WSJ may have to name and shame the offending firms and even call in FCA chief Martin Wheatley, who is believed to be prepared to scour every fund launch press release to ensure the correct charge figures are included.
Wheatley was unavailable for comment.