The £43bn Border to Coast Pensions Partnership has become the third local government pool to sign up to the cost transparency code.
It follows in the footsteps of Brunel Pension Partnership and Local Pensions Partnership, which were the first pools to sign up to the code earlier this year.
Launched last May by the Scheme Advisory Board (SAB) to help local pension funds get a better hold on costs, particularly transaction costs, the voluntary code has now reached around 85 signatories.
Pools must be authorised as asset managers by the Financial Conduct Authority in order to sign up to the transparency code; Border to Coast received authorisation in May.
Chief operating officer Fiona Miller said: "We're fully behind what the SAB is trying to do on cost disclosure; they have done some fantastic work. We need to get to a point where we know what all the costs are and differentiate them. We need to get all that data in order to conduct best practice."
The pool's third-party administrator and depositary Northern Trust will help it with the information it requires.
Miller said one of the advantages the pool has above asset managers, is it has no legacy systems; "so everything been built with the intention of meeting this requirement."
There will have to be an educational and communication piece for members, she said, as cost transparency will make reported costs look higher.
Another issue is that certain asset classes will subject to the code while others will not be. The code in its current form is only for listed asset managers but will be extended to unlisted managers such as private equity in the future once the templates are developed.
"We will have a real mixed bag," said Miller.
She also said it will be important to focus on returns after fees and costs.
"As a pool, we're focused not on costs but on long-term net returns."
The other five local government pools have not signed up to the code. PP understands the pools are still going through the legal and system implications internally, but there is no indication that any of them will not sign up.
All listed managers that are noted in the 89 LGPS funds' 2107 reports and accounts have now signed up.
The code will soon adopt the cost disclosure templates that have been developed for the wider pensions sector by the FCA's Institutional Disclosure Working Group (IDWG). The templates which include property and private equity templates will be published for voluntary usage in the autumn.
The template underpinning the LGPS code stems from a proposal set out in a 2015 paper written by Dr Chris Sier, who leads the IDWG, for the Financial Services Consumer Panel based on the Dutch cost disclosure model. Unison, which holds the vice-chair position on the SAB, was the first to promote cost transparency on the SAB's investment committee.
It comes after the Work and Pensions Committee last week launched a probe into whether there is sufficient transparency of pension costs to savers.
PP has looked at data showing how investment costs of Dutch pension funds fell by more than a third in one year after its voluntary costs reporting framework became compulsory.
The SAB board will be launching a compliance service before the end of the year to make sure the managers that have signed up are sending the templates to their fund clients. Once they become signatories, managers have 12 months to comply with the code.
The government will set up an infrastructure bank to support investment and to co-invest alongside investors including pension funds.
The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
Estatee agent denies a shareholder’s absence from voting is an issue, finds Minerva Analytics.
In this live blog, Professional Pensions' sister title Investment Week collates all the breaking market news, analysis and opinion on equity, bond and currency movements as well as the impact of trade wars, tightening monetary policy and the Brexit negotiations....
Attractive valuations and prospects for economic recovery support small-caps