The Pensions and Lifetime Savings Association publishes topical questions to aid trustees in considering the effectiveness of their managers’ stewardship activity. We encourage funds to ask these questions during their regular manager reviews in an effort to understand their managers’ approaches and activities and to ensure that they are adhering to the stewardship policies.
TOPICAL QUESTION FOR YOUR MANAGER
Background: The FCA market study highlights the sustained profit margins, price clustering and high levels of remuneration in the asset management market, suggesting that these are not indicative of a fully functioning market and that a truly competitive industry with well-informed clients would have resulted in greater downward pressure on costs.
Question: What is the basis for the costs charged by your firm? What steps are you taking to offer your institutional and retail clients a more competitive pricing structure?
Read previous questions here.