Frank Russell Company has embraced the UK government's call for a greater awareness of pensions funds' transaction costs among trustees.
“The revision to Mr Myners’ original proposal is a rational response to the issues that came up during the consultation process”, observed Bob Collie, consulting director at Russell.
“The Treasury has not been willing to abandon this important issue, but it has listened to the industry’s concerns that the original proposal could well have had unintended consequences damaging to pensions funds’ interests. They have asked trustees to gain understanding of the area and used the threat of a referral to the competition authorities to ensure that the brokers and fund managers co-operate.”
In its support for a greater understanding of transaction costs, Russell has announced a series of client education seminars. The topics to be covered include an outline of the challenges facing trustees; an introduction to the various types of cost that funds incur in trading; the role of commission recapture as part of a strategy to monitor and control costs; and the impact of manager transitions on transaction costs.
The date of the first seminar has been set for August 24, 2001 with subsequent sessions in Scotland in mid-September and back in London in October.
By Janet Du Chenne
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