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Nest may reveal fund manager fees

Nest chief executive Tim Jones says he plans to enter talks with the Government over disclosing how much the scheme pays its fund managers.

Nest levies an annual management charge of 0.3 per cent on members’ funds alongside a 1.8 per cent contribution charge.

The annual management charge covers scheme administration, which is outsourced to Tata Consultancy Services, and fund management fees. It also pays for the running costs of Nest Corporation.

The administration deal with TCS runs until 2020 and is worth £600m. However, the cost of fund management is not disclosed.

In April 2011, Nest refused to release details of these fees following a freedom of information request by Money Marketing. It said disclosure would “prejudice the commercial interests” of the scheme.

Nest fund mandates include UBS, BlackRock, F&C, HSBC and State Street.

Speaking to Money Marketing, Jones says he plans to hold talks with Government officials over the coming months about publishing its fund management charges.

He says: “Within the 30 basis points there are the costs of Nest Corporation, then our oursourced deals with TCS and the people running the money.

“The deal we have on the money is an undisclosed number of basis points. It is quite an interesting debate about whether we should disclose.

“I am actually quite warm to disclosing that, but we need to have a conversation with Government about doing that.”

Chase de Vere head of communications Patrick Connolly says: “Nest should be leading the way on charges transparency so it would be good to see this happen.”

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