UK - The £669m Devonport Royal Dockyard Pension Scheme has appointed HSBC Global Investor Services to monitor its equity transactions costs.
Devonport holds around 62% of its portfolio in UK and overseas equities, excluding unit trusts.
HSBC’s transaction cost measurement service, launched last year, measures individual fund managers’ execution costs and benchmarks these against similar transactions.
Neil Skinner, pensions manager at Devonport Royal Dockyard, said: “This is an area where the trustee believes that they must apply their fiduciary duty, and the TCMS system uses the information already held by the scheme custodian to provide a cost and time effective method of applying that duty.”
Dave Green, industry head, pensions at HSBC Global Investor Services, said: “Devonport’s decision confirms that demand for these cost measurement services is growing.
“TCMS is a very effective and innovative monitoring tool which should appeal to many pension fund trustees.”
Earlier this year, the £3bn London Regional Transport Pension Fund halved its its foreign exchange transaction costs by adopting Record Currency Management monitoring services.
The appointment built on an existing relationship with RCM to see whether its custodians and investment managers have been giving them a good deal on foreign currency rates.
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