26 May 2020

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 are working with CTI to enable cost data for real estate funds to be recorded in a consistent and clear way on the templates. To assist AREF members with completing the CTI templates we have produced a CTI Reporting Q&A.

Author

Jacqui Bungay

Jacqui Bungay

AREF Secretariat, AREF

Jacqui provides policy guidance and secretariat services to the AREF Board and AREF Management Committee as well as the following AREF Committees: Corporate Governance, ESG & Impact Investing, Investor, Public Affairs, Research and Information and Retails Funds. In addition, Jacqui monitors members’ compliance with AREF’s Code of Practice. 

Jacqui joined AREF in 2014 after working for over 25 years in fund compliance, client relationships and administration at Natwest Trustee & Depositary Services.