WILTSHIRE COUNCIL

WILTSHIRE LOCAL PENSION BOARD

13 July 2017

Investment costs – Code of Transparency

Purpose of the Report

The purpose of this report is to introduce the voluntary Code of Transparency developed by the Local Government Pension Scheme Advisory Board.

Background

The move towards investment fee transparency and consistency has been seen by the Scheme Advisory Board as an important factor in the LGPS being perceived as a value led and innovative scheme.

Transparency has also been a target for the revised CIPFA accounting standard issued for inclusion in the statutory annual report and accounts and included in the government’s criteria for pooling investments.

Considerations for the Board

The core of the Code is a template for completion by asset managers. The template has been designed in conjunction with the Investment Association and should be submitted to Investment Managers LGPS clients.

The Code is not designed to enable comparisons of manager costs but rather to enable individual LGPS administering authorities to access the data they need for transparent reporting.

Signatories to the Code may use the Transparency “tick” logo on promotional material subject to the Code and Code Logo use and guidance.

Currently 3 of Wiltshire’s Investment Manager have signed up to the Code including; Baillie Gifford, Investec and Legal & General.

Further information can be found on the Scheme Advisory Board website or by following the link below.

http://www.lgpsboard.org/index.php/structure-reform/cost-transparency

It is envisaged that the template will develop over time to encompass other more challenging areas of cost transparency and will remain flexible to enable changes to meet the rapidly developing market for investment products.

Environmental Impact of the Proposal

There is no known environmental impact of this proposal.

Safeguarding Considerations/Public Health Implications/Equalities Impact

There are no known implications at this time.

Financial Considerations & Risk Assessment

There is no financial consideration resulting from this proposal.

Proposals

The Board is asked to note the developments made to date by the Scheme Advisory Board and ongoing discussions.

Michael Hudson

Treasurer to the Pension Fund

Report Author:	Catherine Dix, Strategic Pensions Manager

Unpublished documents relied upon in the production of this report:	NONE