HSBC Global Investor Services (GIS) has sold its transaction cost measurement service (TCMS) to a second client: the Royal County of Berkshire Pension Fund.
TCMS, launched in February this year, was developed in conjunction with GSCS Limited. It measures individual fund managers’ execution costs for UK equity transactions and compares these against similar transactions. It enables clients to comply with the voluntary principles issued by HM Treasury following the Myners review of institutional investment in the UK last year.
Dave Green, Industry Head, Pensions, GIS, says: “Our own research using TCMS revealed a wide variation in equity transaction costs and that the most expensive charges can be three times as much as the lowest. The Royal County of Berkshire Pension Fund’s decision confirms the market for these services is growing and that TCMS is a very effective and innovative monitoring tool which will appeal to many pension fund trustees.”