ClearGlass, the company founded by transparency campaigner Professor Chris Sier, is extending its cost and performance benchmarking proposition to the asset management industry.
The service will enable users to identify which asset managers are rated best for cost and performance, enabling asset managers to optimise their outcomes for asset owners.
ClearGlass says it supports industry stakeholders by identifying billions of pounds wasted by UK pension schemes on underperforming asset managers, driving transparency and improving member outcomes.
Sier says: “Last year, ClearGlass processed over 11,500 FCA approved CTI templates for mandates held by 420 asset managers in the UK for over 850 institutional asset owner clients, representing AUM of over £800bn. Using this data, we rated asset managers in ClearGlass Benchmark Quartiles across different investment strategies for cost, performance, and manager transparency. Those in the top quartile for either costs or performance in an investment strategy, and in at least the second quartile for the other, achieve Elite Manager status and are entitled to use a ClearMark for Elite Managers to evidence and promote this.
“The industry can now address the market asymmetry resulting from only asset owners having access to detailed cost and performance benchmarking. Elite asset managers can use the ClearGlass ClearMark to strengthen their client retention and gain new business, but more importantly poorly ranked asset managers can use the data to identify what needs to be fixed; for example those ranked as strong performers with but high costs can make use of the data to address high costs and become an Elite Manager.
“We have also recently introduced ClearGlass Outcome Variance Analytics for each investment strategy to show the financial savings and performance gains that can be achieved by employing managers in the top quartiles over those in the bottom quartile are quantified. Extending this analysis to UK DB pensions shows that cost savings of about £6bn a year can be achieved. The scope for improvement for UK pensions is significant.”
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