Baillie Gifford and Montanaro have become the first asset managers to commit to the Local Government Pension Scheme’s (LGPS) new transparency code.
The code, which is voluntary and was launched in May, seeks to increase the transparency of costs charged to LGPS. Cost disclosure is proving a hot topic in the asset management industry at the moment.
A spokesperson for Baillie Gifford, which manages assets of $18bn, said the firm supports the initiative for asset managers to disclose all implicit and explicit investment costs to their LGPS clients.
“We believe that full cost disclosure leads to greater understanding of the investment process, better cost management and ultimately better outcomes for investors,” the spokesperson added.
“We are committed to minimising, wherever possible, the total costs of investment borne by our clients.”
A spokesman for Montanaro told portfolio institutional that the firm has long-standing relationships with local government schemes and signing up to the code reaffirms its commitment to transparency on fees.
This appears to be business as usual for both firms, who pride themselves on being upfront about the fees they charge.
A statement from Baillie Gifford states that it has disclosed all transaction costs for pooled and segregated clients in quarterly reports since 2002.
