Local authorities pension charges statement
Commenting on the FT investigation which reveals a huge disparity in fees paid by local authorities for pension schemes, Gina Miller, founder of The True and Fair Campaign and the recently launched trueandfaircalculator.com website, said:
“Investment and pension fund management fees are a national scandal and it is no surprise to read that some local authorities are paying up to three-times more in charges than others for similarly sized pension funds.”
Posted By: True and Fair, 7:35 pm
“It is imperative that local authorities and other investors have clarity on the total charges in order to properly compare these costs with the returns they anticipate from their investments, before such costs are levied. This is particularly critical in an environment of low returns. The FCA recommends forecasts for pensions being based on just a 5% pa central rate, before all costs, it is the duty of every trustee and adviser to investigate and be informed of the true costs.
Institutional investors face an information vacuum whereby they are often told the recent performance when it suits but rarely the real total costs associated with that performance. They need to know both to make an informed investment decision.
The True and Fair Campaign has been calling for 100% transparency on all fund management fees and costs for the past 18 months to end this disgraceful deceit – and we have just launched an Investment Calculator which for the first time shows all the various layers of UK fund costs and fees, and calculates the total charges on any investment in one number in £ and as a percentage.www.trueandfaircalculator.com
We hope this begins to lift the shroud of secrecy that surrounds costs and fees in the UK and prompts the fund management industry to look at how they deliver returns that justify the fees in an environment of low growth.
“We would strongly recommend that every trustee and adviser to any pension fund forces their fund managers and other intermediaries to disclose a true and fair Total Costs of Investing as per the True and Fair Calculator layout so that they can make the best possible investment decisions for those entrusting them with their savings and investments.”