SCM Private has slammed the investment management industry over a lack of transparency in charges and investments in its first report as part of the wealth manager's True and Fair campaign.

As well as reiterating its manifesto on how to reform the industry, and criticising the Investment Management Association (IMA) for reducing industry transparency, the report contained the results of a poll of 2,029 people in December 2011.

The poll found that 81 per cent of respondents didn’t know what they were being charged for on their investments, or why they were being charged.

The study also showed almost unanimous support (89 per cent) for full disclosure of all fees by fund managers, while 83 per cent of those polled supported being able to find out exactly where their money is being invested.

The report questioned why some fund managers seem to offer different levels of portfolio disclosure depending on the region in which they operate.

It cited Fidelity and BlackRock, both of which publish 100 per cent of the portfolio for their flagship US funds quarterly, but only reveal the full portfolio in their respective UK Special Situations funds annually.

The report also criticised the IMA, which has come out in support of the current fee structure and transparency and has rejected claims that there are hidden charges.

SCM has estimated that hidden ‘dealing costs’ account for £2.9 billion per year from retail funds alone, as part of £18.5 billion per annum from the whole UK savings and investments industry.

The report also takes aim at the IMA for its role in the £400 million Arch Cru scandal, as it labelled one of the funds, which was exposed to unquoted African and Greek investments, as a ‘cautious’, and therefore less risky, investment.

SCM warned that absolute return funds might be the next mis-selling scandal due to mis-labelling from the IMA. However, the Absolute Return sector is currently under review by the IMA, with a resolution expected later this year.

In response to the report, Richard Saunders, IMA chief executive, commented, 'The report raises a number of issues which are already the subject of very detailed EU regulation arrived at after extensive consultation.'