ONE of the City’s best-known fund managers has launched a campaign against fees in the investment industry, arguing that customers have been “ripped off” for too long.
Alan Miller, who recently founded low-cost fund manager SCM, said investors faced a “minefield of charges” and were being left “seriously out of pocket” when it came to their investments and pension.
As a remedy, Miller yesterday launched a “true and far code and labelling scheme”, which will allow investors to compare investment products on a like-for-like basis.
Earlier this week Gary Shaughnessy, the UK managing director of Fidelity, also called for greater transparency, warning that some “low cost” funds were copying Ryanair by using “selective and partial” pricing to hide their true cost.
Yesterday, Shaughnessy told City A.M. he thought greater transparency would prove that most funds were not ripping off customers.
“Its not about putting out large numbers, its more about getting things done. Generally speaking we should want more people to invest in fund to save for their retirement,” he said.
