The Cost Transparency Initiative (CTI) was launched in November 2018; it is an independent group supported by the Pensions and Lifetime Savings Association (PLSA), the Local Government Pension Scheme Advisory Board and the Investment Association (IA).
CTI is a new industry standard for institutional investment cost data. This built on the recommendations of the Institutional Disclosure Working Group (IDWG)*. The availability of comprehensive and transparent information on costs and charges is important in helping investors to decide whether investments represent value for money. A set of templates and tools have been developed to form a framework investors can use to receive standardised cost and charges information from asset managers.
* The IDWG was disbanded after submitting its final report and recommendations to the Financial Conduct Authority (FCA) in June 2018. Its goal was to achieve agreement on a standardised disclosure template.
You can find more information on the CTI webpage and IA website
AREF's CTI & Expense Ratio Working Group provided input, via the Technical Expert Panel, to the Cost Transparency Initiative (CTI). The CTI updated their website for the work that the Working Group did on closed ended fund reporting. What was the CTI Private Equity Sub-template is now the Private Markets Sub-template. This is a cost disclosure template to be completed by asset managers of closed-ended private equity, private debt and real estate (property) funds. It can be used for closed-ended real estate funds and real estate debt funds, which was the objective of the working group in asking for the change. The template now includes property level cost disclosures (the same as in the standard template) and can be found here.
To assist AREF members with completing the CTI templates we have produced a CTI Reporting Q&A.
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