Read what our cost transparency product specialist, Scott Foster, has to say on cost transparency. We cover the different types of cost incurred by pension funds, including transaction costs, which can make up around 20% of total cost of ownership.
11 Mar 2019
Cost transparency can offer a comprehensive overview of a pension scheme’s administration and investment costs, providing an integrated understanding of the underlying costs incurred within a scheme. We believe that access to this information can help trustees make more informed decisions through analysis of their cost data, in the context of a pension scheme’s strategy.
KAS BANK launched the first UK pension cost transparency dashboard in 2017 and now works with a number of UK pension schemes in collating and bringing their cost data to life through its visualisation tool. There is a strong emphasis on transaction costs, which typically make up around 20% of the total cost of ownership of a pension scheme. Cost transparency is also on the regulatory agenda as part of the drive for improving governance. This has come as the industry continues to rally in support of cost transparency, with schemes recognising the benefits of better understanding their costs, and the necessity to assess and report on value for money.