UK Pension Schemes Could Save £2bn in Fees, Research Finds
Financial Times
May 15, 2023
Data showing big gaps in investment costs suggests lack of transparency is hitting pension savers. UK pension schemes could save about £2bn from fees paid to asset managers without sacrificing returns, according to research that suggests price competition among institutional investors is failing to drive down costs
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Transparency in Cost and Performance Benchmarking
The UK's Cost Transparency Initiative (CTI) and the Republic of Ireland's Cost Transparency Standard (CTS) are data collection frameworks supported by ClearGlass that provide institutional asset owners and their advisors with cost and performance benchmarking reports that enable them to assess the Value for Money (VfM) delivered by asset managers. It enables asset managers to understand whether they are delivering competitive outcomes and value for money for clients.
ClearGlass has supported over 850 asset owners in the United Kingdom with assets under management (AuM) in excess of £1.3 trillion, providing cost collection and benchmarking analytics for asset owners in 46 investment strategies. This is now being introduced across the EMEA region starting in the Republic of Ireland, Iceland and South Africa with plans to expand throughout EMEA.
In addition, ClearGlass has worked with over 530 asset managers to obtain and verify CTI data on behalf of their clients. ClearGlass provides Market Positioning Reports to asset managers which enables them to understand their competitive position in an investment strategy and to determine optimal market positioning and pricing.
ClearGlass provides Value-for-Money (VfM) reports to support a number of initiatives introduced by regulators in both the United Kingdom and the European Union. These include Value Assessments and Consumer Duty in the United Kingdom, and the IOPR II Directive Critical Review within the European Union. The reports provide a simple client-specific report (mandate by mandate) to demonstrate to trustees and stakeholders that Value for Money (VfM) is being delivered.
