LGPS Central has partnered with KAS Bank (now CACEIS), the specialist provider of securities services to UK institutional pension schemes, for cost transparency collection and reporting. The pooled fund will be leveraging KAS Bank’s cost transparency solution and data analytical expertise to assist with collecting cost information across the range of investment mandates for both pooled assets and those employed by partner funds. An important area of focus will be the integrity and security of this cost data, said Mike Weston, chief executive officer at LGPS Central.
KAS Bank will generate a cost report using its cost transparency dashboard, which will be accessible to the team at LGPS Central and its partner funds. The partnership will allow the pool to further tighten its governance standards and facilitate thorough cost transparency on behalf of partner fund investors, Weston explained.
Pat Sharman, Managing Director, UK at CACEIS, added that there has been an increased demand across the industry for cost transparency data collection and reporting. “We support [LGPS Central’s] focus on transparency and are best placed to support LGPS Central given our experience in both Dutch and UK markets,” she continued. The bank launched its cost transparency solution to UK pension funds in 2017 and now partners with several major UK pension schemes in meeting their requirements.
“We continue to enhance our platform to meet the needs of pension schemes, having recently launched our DC cost transparency solution. This ensures DC schemes are supported on their investment costs and conduct informed value for money assessments,” Sharman said.
LGPS Central, one of eight pooling vehicles across England and Wales, is currently responsible for the management and stewardship of approximately £20 billion of assets for nine Midlands-based Local Government Pension Scheme (LGPS) funds. The nine funds have approximately £45 billion of investment assets collectively.