The National Employment Savings Trust (NEST) is expected to enrol anything between two and five million individuals nationwide from next year, so if scale is the key to transparency and potentially reducing charges, is NEST in the perfect position to take advantage of this?
NEST Corporation believes it will offer members both low charges and the highest possible level of transparency. The scheme has a combined charge comprising a 1.8% contribution fee and a 0.3% annual management charge. The 1.8% contribution charge will fall away once NEST’s start-up costs are met. Lower charges Chief investment officer Mark Fawcett says it is unlikely the charging structure could drop any lower, despite the scheme’s large scale. He says in terms of transparency, the charging structure is explained very clearly to members when they join through a welcome pack. ...
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