Pension fund managers 'hiding' £3.1bn trading costs

SCM Private claimed it found pension funds hold assets for an average of nine months, with trading costs on average 0.7% of the fund per year, or £3.1bn across the industry. The wealth manager said this level of trading and cost is unnecessary because similar returns can be obtained by investing in index funds, according to its research. SCM Private said the actual, but undisclosed, cost of investing in pension funds is on average 2.34% a year. Its estimate combines an average annual management charge (AMC) of 1.34%, plus average administration fees of 0.3% and the hidden trading c...