22 May 2017
London
Reporter: Drew Nicol
LGPS board releases transparency code for managers
Asset managers working on the new Local Government Pension Scheme (LGPS) for England and Wales are now able to sign up to a transparency code as a way of boosting their attractiveness for mandates.

The voluntary code focuses on shedding light on investment cost and fees applied by asset managers to the administering authority of the pension fund.

Managers that conform to the code must create an automated annual reporting system with their client for relevant fees and transaction costs within 12 months of signing up. Pension funds can request these reports on a quarterly basis.

The reports must be presented using templates created by the LGPS board. There are separate templates for segregated portfolio management and for pooled funds.

If an investment manager operating a segregated mandate invests in a pooled fund as part of that mandate, the reporting will be done via the manager’s own template.

Speaking on the code’s launch, KAS BANK UK product manager Stewart Bevan, said: “It’s excellent to see the cost transparency debate take another major step forward at the PLSA conference. The transparency code launched by the UK’s LGPS looks like a significant contribution toward better cost disclosure for pension schemes.”

“Adoption will develop into best practice in time, but real success will be achieved once all this information is presented in a meaningful way for schemes, and used by trustees to make better-informed investment decisions for their members.”

The code was developed to assist LGPS administering authorities in gaining greater clarity on investment fees and was created in partnership with the the Chartered Institute of Public Finance and Accountancy, along with other key stakeholders.

The LGPS pooling project is set to launch in April 2018.

More mandate news
The latest news from Securities Lending Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Lombard Risk dominates Canada with new mandate win
18 July 2017 | London | Reporter: Drew Nicol
Lombard Risk Management has tightened its grip on the Canadian banking market with another major bank signed up to its flagship Colline collateral management solution
Mirae Asset Securities chooses BNP Paribas for global custody
12 July 2017 | New York | Reporter: Mark Dugdale
BNP Paribas will provide the US broker-dealer and subsidiary of Mirae Asset Financial Group with global custody services in the Americas, Europe and Asia
Italian pension fund Fondo Pensione Prevedi has selected BNP Paribas Securities Services to provide it with securities lending services
LGPS board releases transparency code for managers
22 May 2017 | London | Reporter: Drew Nicol
Asset managers looking to claim mandates from the LGPS pooling initiative can now sign up to a new fee transparency code ahead of the April 2018 deadline
SS&C wins expanded Acadian mandate
17 May 2017 | Connecticut | Reporter: Drew Nicol
Acadian Asset Management cites collateral management and accounting expertise as key to SS&C mandate
Pension funds pick NT for sec lending
28 April 2017 | Belfast | Reporter: Stephanie Palmer
Northern Trust has secured its thirteenth Irish state pension fund as a securities lending services client
Euronext and ICE Clear partner up
05 April 2017 | Amsterdam | Reporter: Drew Nicol
Clearing operations will be run from Amsterdam, while a new asset financing solution will be built by Euronext and operated from Paris