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Dutch funds agree to map out pensions costs to participants

Tags: Excerpts from the Windmill

AMSTERDAM - Dutch pension funds have agreed to start mapping out all costs related to pensions and asset management and report the results to their participants in a "world's first". The Pension Federation, which held its first annual conference recently, said proper insight into all cost components would allow pension fund boards to conduct bespoke communication with participants and better account for their decisions. The pensions lobbying group described the announcement as "ambitious" considering the fact that reporting will now be uniform sector-wide and that all transaction costs often buried in overall asset management costs will now become transparent. Dutch pension schemes have also agreed to clarify asset management transaction costs separately. It has asked that all members comply with these measures with respect to content and phasing or explain themselves when failing to do so. The Dutch pensions industry has been scrutinising the cost of pension provision since 2006.