A more objective alternative for pension fund reporting
As a general rule, investment management costs are compared by expressing fees as a percentage of assets under management (AUM). A list of the highest and lowest asset management costs is published by Pension Pro and the Dutch Central Bank (DNB), among others. This may lead to incorrect conclusions with potentially detrimental consequences for investors, the pension sector at large, and the specific pension fund in question. Higher costs may be due to investment in investment categories with higher expected returns or, for example, in a more diversified investment portfolio. The next step for the sector is to use objective indicators to compare pension fund performance.
Performance magazine issue 24, September 2017
Performance is a triannual digest, dedicated to investment management professionals, which brings you the latest articles, news and market developments from Deloitte’s professionals and clients.