UK - Fund managers are being urged to use electronic trading networks to cut errors and boost returns on foreign exchange holdings.
Electronic trading portal FXall says it will also allow companies to shop around for the best price, as traditionally, fund managers tend to only use their client’s custodian.
Pension funds would also benefit as electronic trading creates an error free audit trail, allowing them to determine whether they are getting best execution.
FXall European general manager Mark Warms said: “It boosts returns, as one of the key elements here is that they can trade on our system without cost.
“Its important to them, because they always say that they don’t want to take away from their client’s performance. So it does add to their returns.”
This week's top stories included Legal & General acquiring MyFutureNow to provide a dashboard service to customers, while also agreeing a hybrid buy-in with a Hitachi scheme.
NEST has signed up to the government-backed Star Initiative, taking all of its 8 million members' pension pots with it.
It is perhaps inherently difficult to find an agreed definition of value for money, but some methodologies could act as a stopgap, argues Jonathan Stapleton.