KAS BANK’s cost transparency solution now offers UK DB and DC pension funds and their trustees the ability to benchmark costs relative to other pension schemes. Comparisons can be now be made across areas such as total cost of ownership, pension management costs, investment management fees, and transaction costs.
This unique benchmarking comparison gives pension schemes and trustees with the flexibility to compare the costs across the universe of investment managers within their pension scheme.
KAS BANK, the specialist provider of securities services to the UK pension industry, brings over seven years’ experience in cost transparency. The development of the benchmarking solutions involved several years of continuous development of KAS BANK’s intuitive dashboard (specifically designed for trustees), data collection, detailed analysis and reporting to pension scheme committees and boards.
Effective benchmarking closes the information gap for pension funds, providing insights for trustees to assess how they compare on cost, and they can use this knowledge to drive more cost efficiency. For example, KAS BANK works with major Dutch pension schemes on cost transparency, and between 2015 and 2017 costs per member fell by 19%, with the biggest decline coming from investment costs, specifically lower transaction and performance costs.
KAS BANK continues to develop new functionality for its cost transparency solution to meet the needs of DB and DC pension funds. For DC schemes, this includes the development of an end-to-end solution – everything from collecting data at the beginning of the process through to producing the cost section of the Chair’s Statement. This will be a first for any cost transparency solution that’s focused on the UK pensions market.
Pat Sharman, UK Managing Director for KAS BANK commented: “Our work to support UK pension schemes on the benefits and implementation of cost reporting has gone from strength to strength. This unique benchmarking capability for UK pension funds is a step further in bolstering our flexible cost transparency solution. It provides the tools that trustees need to properly evaluate their costs, supplying them with information that helps them with their decision making and governance oversight.
“Cost transparency in the UK pensions industry remains a top priority for policy makers. Consequently, it continues to climb ever higher on trustee’s agendas. KAS BANK is committed to ensuring that trustees have access to the best possible tools and education through our cost transparency solution for UK pension funds, and through our educational partnership with the PLSA on cost transparency.”