CEM and VB to map out pension operating costs
NETHERLANDS - The Canadian CEM Benchmarking, set up by Keith Ambachtsheer, has announced it will cooperate with the Dutch association of industry-wide pension funds (VB) on new comparative research into the operating costs of pension funds.
CEM, which stands for Cost Effective Measurement and benchmarks pension investments and pension administration among other things, says this is the first time the costs of the asset management and administration of all 79 VB members are being mapped out.
A VB spokesman told IPE that CEM will directly contact its members in the coming months for the analysis, and expects to have the comparative results ready by the end of this year.
"VB is taking the initiative on the benchmark to give pension funds more insight into their costs, in comparison to other industry wide pension funds," VB said, which claimed pension funds spearhead cost-effectiveness.
Mike Heale, a partner with CEM, added: "Pension funds will be able to justify their cost level to their participants in a transparent way via this benchmark."
The company said a number of large Dutch pension funds are already participating in its benchmarking procedure.
Giant Dutch pension fund ABP is one of these funds, as it published in its most recent annual report how it measures up on the cost effectiveness benchmark.
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