UK - Software provider Euraplan is linking up with transaction cost specialist Inalytics to offer pension schemes an advanced analysis of fund managers' costs.
Inalytics has spent the last 18 months developing the TVA software to help schemes meet the Myners report recommendation that transaction costs receive greater scrutiny. At present Inalytics has 100 customers for the new software.
Inalytics chief executive Rick Di Mascio said: “At a time when absolute returns for pension funds are low, the impact of transaction costs on the total performance of the fund is significant. As such, it is a commercial imperative for trustees to be able to measure and monitor such costs, by fund manager and by broker.”
The Inalytics software produces quarterly reports for each customer, and claims to look at not only the visible transaction costs, but also implicit costs such as spreads and the impact and timing of investments.
The final report is designed to help trustees conduct an informed dialogue on transaction costs with their fund managers and to help them evaluate their fund manager’s dealing capabilities. Di Mascio emphasised that while the software was ideal for Euraplan customers it could be also tailored for other systems.
Euraplan business development manager Katherine Johnson said: “The TVA reports will give trustees and members piece of mind that trading costs are not excessive and, where they are, that they have easily been identified. League tables will compare transaction costs between fund managers and between schemes. The schemes can use this information to ensure they are getting the best value for money.”
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