Briefing: New benchmark to reduce cost of FX transactions

Costs of asset management for UK DB schemes

Among the areas of focus for a pension fund looking to cut costs are the fees charged by its asset managers, usually as an annual percentage of assets under management, plus costs for other services. As part of a cost-cutting exercise, however, foreign exchange (FX) is often neglected. But as funds increasingly invest outside their home country, FX transactions are acquiring more significance because of the need to hedge foreign currency fluctuations. And these deals can carry hidden costs.

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IPE editorial provides coverage of foreign pension funds’ experiences from which we can take ideas; we can also use it to share ideas regarding new and pioneering projects.

Ivonne Forno , CEO of Laborfonds