Ratings agency Moody’s has raised concerns about the introduction of cost templates for pension fund managers.
The ratings agency said that the benefit of the cost transparency initiative (CTI) had enabled local authority pension funds to identify previously unreported costs but it could impact on competition as asset managers with smaller margins would be unable to compete.
Marina Cremonese, senior analyst at Moody’s, said: “The introduction of standardised cost and fee disclosure will weigh further on asset managers’ margins, including those for more insulated, less liquid asset classes such as private equity.”
