A key motivation for LGPS pooling was the prospect of economies of scale, the assumption being that larger funds would be able to attract significantly lower fees. But the lack of transparency on fees remains an ongoing challenge.
Recent research by ClearGlass shows that UK pension funds overpay some £1.5bn on fees, with some managers charging clients up to 14 times more for an equivalent product in listed markets.
Room151 editor Mona Dohle sat down with Chris Sier, CEO of Clear Glass, and William Bourne an independent advisor to LGPS partner funds at Teeside Nottinghamshire and East Sussex to discuss if the LGPS is getting a fair deal.
Has pooling brought down fees? Should the regulator play a greater role in creating transparency and accountability on fees being charged to pension funds? How can LGPS funds ensure they are getting a fair deal?
The full conversation can be accessed here.
