UK - The Universities Superannuation Scheme (USS) has appointed Russell Investments to carry out a commission recapture programme for its externally managed global portfolios.
USS estimated the arrangement would save the scheme up to £750,000 (US$1.5m) a year.
Peter Moon, chief investment officer at USS, commented: “From a governance perspective, commission recapture is part of our armoury to ensure commission costs are managed.”
Natalie Pilcher, a director at Russell Implementation Services, said: “Many actively traded stocks are incredibly liquid, meaning that a wide range of venues might be used to make the same trade at the same price.
“In these instances, why not choose one which will rebate you a proportion of your commission?” Pilcher added.
The development follows a report by Paul Myners in 2001 on institutional investment, which noted that an important cost for institutions, namely broking commission, was subject to insufficient scrutiny.
Since this report, pension schemes have taken a closer look at investment costs and their fiduciary responsibility in that area.
USS manages around £30bn ($60bn) on behalf of 220,000 scheme members.
PwC, KPMG, EY and Deloitte must break up their consultancy and audit businesses into distinct firms to provide greater focus on the "most challenging and objective audits", the competition watchdog has said.
The Department for Work and Pensions (DWP) has released its first batch of guidance setting out how the guaranteed minimum pension (GMP) conversion legislation may be used to resolve unequal payments.
This week's top stories include the government spending £800,000 on a Gogglebox advert and MPs writing to The Pensions Regulator about its engagement with the Railways Pension Scheme.