The drive to improve cost disclosure for UK pension schemes has been given a boost by the launch of a transparency dashboard for defined benefit (DB) funds.
The platform, created by Dutch securities services provider KAS Bank, allows trustees to see their scheme’s administration and investment costs online.
This is another initiative to help those running pension funds to assess if they are getting value for money for their members.
It comes weeks after the Local Government Pension Scheme (LGPS) Advisory Board launched a voluntary transparency code. Asset managers Baillie Gifford and Montanaro were the first to sign up to the initiative.
Regulators are upping the pressure on asset managers to improve their cost disclosure to pension scheme trustees on fears that hidden fees are reducing the value of pensioners’ retirement pots.
KAS Bank product manager Stewart Bevan said costs are not inherently bad, but what is unknown cannot be effectively managed.
“Recognising the trust cost of ownership of a DB scheme is crucial to good governance and the tool will enable better understanding,” he added. “In turn, pension schemes can have better conversations and prove the true value they are receiving.”
The dashboard, called Cost Transparency Solution for Pension Funds on its fact sheet, offers trustees a detailed breakdown of all costs, including miscellaneous, processing, consulting and custody fees.
