UK - UK pension fund's trading costs are far higher than those in other countries despite government efforts to cut them, a US performance measurement firm claims.
Research by Elkins McSherry shows the average cost for UK-based schemes’ bond trades was 62 basis points, compared with 40 basis points in Holland and 22 basis points in Japan.
Elkins McSherry chairman Richard McSherry believes the spectre of poor investment returns will force schemes to use cost analysis tools to identify savings.
He said: “If you want a well-run pension fund, you have got to look for cost savings in every nook and cranny.”
The firm already offers equities trading cost analysis to 40 UK clients – including the British Coal Pension Scheme – and claims that its clients have been able to save approximately 31% on their tradings costs over the past seven years.
It is now offering a fixed income trade analysis service for UK–based schemes.
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