Pension funds are spending between 150% and 200% more on investment costs than they admit in their annual reports, the financial services sector watchdog AFM is set to announce later today.

The AFM says pension funds are often unaware of the true cost of farming asset management out to third parties, the Financieele Dagblad says in its preview.
These third parties charge costs to the pension funds but also pass some of the investment on to other players who also charge costs. The total bill, therefore, could be up to €3bn higher than currently suggested, the paper says.