UK - Virtually all fund managers comply with the Pension Fund Disclosure Code on transaction costs, research by the Investment Management Association reveals.
Its study shows that 94% of the fund managers running pension fund money have complied with the code. The IMA says the remaining 6% will be compliant within the next 12 months.
The code – which was drawn up by the IMA and the National Association of Pension Funds in May 2002 – came into force earlier this week.
The code aims to improve trustees’ understanding of fund manager charges and costs by providing a comprehensive report in a clear, standardised reporting format.
Fund managers objected when the code was first mooted and claimed it would take millions to overhaul their systems and procedures to produce the reports.
But IMA senior adviser, regulation, Jim Irving said that despite their misgivings, fund managers had overwhelmingly complied with the code, proving that the government must give the industry time to put its own house in order before contemplating legislation.
He said: “IMA members were horrified by suggestions that they are not taking this seriously.
“People have put in a lot of time and effort here. The timing was unfortunate, but there is no dissent now, the reports are good and provide useful information for trustees.”
NAPF investment council chairman Ken Ayers said: “This is good news for NAPF members, but they need to remain vigilant.
“Where an investment manager reporting to pension fund client does not mention full compliance, the fund’s representatives should ask why. Fund managers are delivering on their side of the deal. The onus now rests on schemes to make intelligent use of the information provided.”
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