Apparently hidden fund management costs are “a non-issue”. So a piece in this slot two weeks ago claimed (“Numbers do not back up claims on hidden costs,” Financial News, April 14). It was by Richard Saunders, a former chief executive of the Investment Management Association, whose opinion was based on research the IMA published in May 2012 that claimed there is no relationship between trading activity and performance.

This research was thoroughly biased and totally misleading, as it analysed only the 15 largest funds, which typically deal the least, and ignored the "spread" element within transaction costs. Both the IMA and Saunders appear to have their heads buried in the sand, which is stifling evolution of the UK investment management industry.