PTL Blog

Slippage Costs: What does it all mean?

Posted by Donny Hay on Oct 12, 2017 8:30:00 AM

Background – What, When, Why?

The FCA ruled on 20 September that from 3 January 2018 asset managers have a legal duty to respond to requests from workplace DC governance bodies for information on transaction costs using the ‘slippage cost’ calculation methodology.

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Topics: Transaction costs, investment transaction costs, slippage, slippagecosts, independent pension trustee

A Man Walks into a Bar

Posted by Richard Butcher on Aug 16, 2017 9:15:14 AM

First published in Pensions Insight, 15 August 2017

There is a common language when it comes to beer and bar snacks - we need the same for pensions.

A bizarre and weird thing happened to me the other day. I went to meet with someone I’d never met before, in a pub, not far from home. 

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Topics: Transaction costs, investment management, investment, investment transaction costs

Investment Transaction Costs: Your duty to ask

Posted by Richard Butcher on Jun 26, 2017 10:11:16 AM

I started my career at a time when the only paper emerging from a computer’s printer had pale green lines across it and perforations down the side, it folded at A3 intervals to form neat orderly piles that would gradually brown as they sat on the edge of your desk.

It’s the mental image of this stuff that comes to mind every time I think about investment transaction costs. Line after line of computer generated data detailing the up to, we think, 46 costs that could be incurred on each and every trade your fund manager makes. Terabytes of data – albeit more probably shared electronically these days. 

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Topics: Transaction costs, cost transparency, value for money, pension charges, investment transaction costs

Transaction cost debate: where to next?

Posted by Donny Hay on Jun 21, 2017 3:39:15 PM

First published in Pension Funds Online, 09 June 2017

The asset management industry is not used to having the spotlight shone on it, however it has come as a result of the debate on costs and charges. Donny Hay looks at the importance of transparency when dealing with costs.

In her January 2017 article titled "Understanding the transaction cost debate" my colleague Alison Bostock asked how DC trustees and Investment Governance Committees (IGCs) can meet their duty to assess whether transaction costs are value for money.

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Topics: Transaction costs, cost transparency, sustainability, investment transaction costs

The investment costs map: below-the-line costs

Posted by Richard Butcher on Feb 21, 2017 11:42:44 AM

In my blog The investment costs map: where costs can occur in the investment processI described where and when pension investment costs can occur. In this blog, the third in the mini series, I set out what costs can occur “below the line”.

Firstly, a few things to remember from the first blog. The “line” is where the unit price is calculated. Costs that are below the line are implicit in the unit price (i.e. they are deducted BEFORE the unit price is calculated and so they are invisible to the consumer) and will not be contractually specific. Also, costs have both quantum and duration – different amounts at different times.

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Topics: Transaction costs, investment, cost transparency

Disclosure – what tosh!

Posted by Richard Butcher on Aug 25, 2015 2:01:00 PM

First published in Engaged Investor Online, 25 August 2015

Disclosure rules are leaving trustees unable to communicate effectively with members, says Richard Butcher, independent trustee and managing director of PTL.

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Topics: Defined Contribution, Transaction costs

Transaction Cost Car Crash

Posted by Colin Musgreaves on Aug 7, 2015 2:14:00 PM

Colin Musgreaves raises concerns over the complexities of new regulations and asks, who will explain?

Thanks to a 22 year old boy racer not looking where he was going, I am the proud but involuntary owner of a brand new car.

For the past month I have had hours of fun randomly pressing buttons, but yesterday, when opening a previously unopened compartment on the passenger side, I discovered an object of horror and mystery in a black leather case, an instruction manual!

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Topics: Defined Contribution, Transaction costs

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