Committee on Workers' Capital

April 9th Webinar - Fee Transparency: What Lies Between Net and Gross Returns and Why is it Important for Trustees?

Hugues Letourneau — 2019-03-21T23:27:41Z

This webinar will highlight efforts taking place in the UK and the US to enhance fee transparency. Better transparency helps trustees understand the gap between gross and net returns on investments and gives them a better ability to evaluate and negotiate fees with asset managers. In return, this may improve the funding of pension liabilities and improve outcomes for pension beneficiaries.

Date:
Apr 9, 2019 8:00 AM PDT/11:00 AM EDT/16:00 BST/ 17:00 CEST

Registration link:
https://attendee.gotowebinar.com/register/5101778330455282435

Please note that this webinar is open to trustees on asset owner institutions and trade union officials. For any questions, please contact info@workerscapital.org

Press Release: CWC report calls for cost transparency at pension funds across the world

Hugues Letourneau — 2018-10-03T20:38:56Z

The CWC report Pension Fund Cost Transparency finds that unions, trustees, legislators and regulators are recognizing the importance of mandating standardized disclosures that inform responsible decision making by trustees. The report examines case studies in the UK, Netherlands, the USA and Australia — four jurisdictions that account for 77 percent of global pension fund investments.

The CWC report describes that more than 90 percent of the total cost of running a pension is related to investment management and transaction costs at two large Dutch pension funds. While these costs are disclosed by funds and collected by the regulator in the Netherlands, they are not always transparent or understood in jurisdictions that do not have cost transparency templates. In Australia, superannuation funds are required by the regulator to disclose costs to fund members and funds have adopted a voluntary cost mapping table. In the UK, a cost template will be published by regulators in the autumn of 2018. In the USA, some states have adopted fee collection requirements for public pension plan investments in private market assets.

“It is troubling to think that two workers in a similar industry with similar wages might find themselves in vastly different situations at retirement because of opacity around fees and the impact of fees on the net returns of their pension funds,” said Sharan Burrows, General Secretary of the International Trade Union Confederation.

Click here to continue reading the press release.

Click here to read the report.

Press Release: CWC Report on Cost Transparency at Pension Funds

Hugues Letourneau — 2018-10-02T21:05:30Z

pressrelease_fees_cwc_final.pdf

Pension Fund Cost Transparency: A How-to Guide for Unions

Hugues Letourneau — 2018-10-01T19:22:00Z

This report seeks to empower trade unions and pension trustees around the world to seek better transparency on the fees paid when the retirement savings of workers are invested.

Click here to read the report

CWC November 2017 Newsletter

Tamara Herman — 2017-11-27T08:00:00Z

In this edition of the CWC's newsletter:

The CWC Conference
Portrait d'administrateur/Trustee Profile: Philippe Soubirous
Woolworths shareholder resolutions (Australia)
CWC in the news: Fees in the investment chain
News and notes from CWC participants: Updates on capital stewardship in Australia, France, and the US
Key consultations: European Commission Public consultation on institutional investors and asset managers' duties regarding sustainability
Important reads: SHARE's Trustee Guidance on Decent Work, Benchmark Responsible Investment by Funds in the Netherlands

SHARE and the CWC have moved to a new office. Please note that our new address is Unit 510 – 1155 Robson Street, Vancouver, BC V6E 1B5

Read the full newsletter here

cwc_november_2017_news_bulletin.pdf

Asset manager fees

Hugues Letourneau — 2017-07-20T07:03:08Z

The regulatory regimes around fee disclosure vary widely across countries and across asset classes. The CWC works with trustees and unions around the world to spread best practices around the topic of fee disclosure transparency.

The trustees of pension funds have the responsibility to invest workers' retirement savings efficiently. When the retirement savings of workers' are invested in financial markets, pension boards utilise the services of asset managers for a fee. As part of their fiduciary duty, trustees must assess the value that they obtain from contracting with one asset manager over another.

In recent years, there has been increased scrutiny around the transparency and the level of fees charged by the asset management industry. Recent laws in the Netherlands and Australia have improved the transparency of asset managers' fees. In the UK, a 2017 Financial Conduct Authority Report recommended that a standardised template of costs and charges be agreed for the evaluation of asset manager costs. The CWC develops practical guidance for unions and trustees to navigate through the complex web of fees in the investment chain to optimize value for pension beneficiaries.

To read the CWC report, Pension Fund Cost Transparency: A How-to Guide for Unions, click here.

Photo: Pixabay | Pexels

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Alex Gomes — 2017-06-27T15:45:19Z

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