The Friday Takeaway: Of costs and kings
Amid the pomp and ceremony of the State Opening of Parliament this week came the thrills and spills of a new Pension Schemes Bill.?
With so many things already in train when the election was called – addressing small defined contribution pots, the value for money framework, default decumulation options – it's clear the government wants to get these things finished before it embarks on its own review.
Elsewhere, the Local Government Pension Scheme (LGPS) is considering an upgrade to its cost transparency system, currently operated by specialist technology firm Byhiras.
When the LGPS introduced its Code of Transparency in 2017 it was a game changer.
Institutional asset owners used their power and influence to work with the asset management industry to provide clarity on costs and charges. Investors could measure and manage their expenses more accurately, while managers could demonstrate they were not hiding costs, as some commentators had alleged.?
However, it appears that there are still elements of imbalance and potential unfairness in the way pension schemes are charged for asset management services. Research by ClearGlass – founded by Christopher Sier , architect of the Code of Transparency – shows that there are often big discrepancies between the charges levied on different schemes for the same investment mandates.?
There are various reasons for this, which Pensions Expert plans to explore in the coming weeks, but one thing is clear: schemes and their advisers should not rest on their laurels when it comes to ensuring cost fairness and transparency.?
Have a great weekend.?
Nick Reeve?- Editor, Pensions Expert
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Story of the week
Over in defined contribution (DC) land, Smart Pension has agreed to acquire the Options Workplace Master Trust. The deal, Smart's 10th acquisition, would see its assets reach ￡6bn as it continues to lead on the consolidation of DC schemes.
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Appointments: All change at London CIV
Big news from the LGPS this week as London CIV's chief investment officer Aoifinn Devitt is set to depart from her role at the end of this year. She joined the pool in January as its fourth CIO since 2017.
Meanwhile, London CIV has also announced the appointment of Sarah Nowell as its new chief risk officer, replacing Stephen Burke, who is retiring.
There have also been pensions-related appointments at Redington , XPS Group and Invesco Ltd. this week.
Register now: The DB Strategic Investment Forum
Calling all DB scheme trustees and managers! Pensions Expert and DG Publishing are hosting the DB Strategic Investment Forum on 17 and 18 September at Cameron House on the shores of Loch Lomond.
We're kicking off the event with a pre-conference discussion about the evolving role of consultants in providing services to DB schemes, followed by dinner at Cameron House's La Vista restaurant.
Our speakers will be covering everything from policy to consolidation, equities to real estate, natural capital to impact investing. Register now or view the latest agenda here.