NOW: Pensions, the multi-employer trust backed by Danish pension scheme ATP today unveiled the details of its new product offering for the UK, proving that the country can export more than just bacon, lager and Lego.

The daughter company of Danish ATP launched in September as a direct competitor to Government-backed NEST.

The pensions provider had already announced it would only be offering a default fund, adding today that this investment strategy would "perform and protect".

The strategy is based on three funds; a managed diversified growth fund, a retirement protection fund and a cash protection fund. According to ATP the strategy is designed to "deliver strong returns on investment in any economic climate".

Morten Nilsson, chief executive of NOW: Pensions, said: "We have been providing virtually all of Denmark's working population [4.7 million members and 160,000 employers] with stable, consistent returns over the past 45 years, no matter how volatile the economic climate, and we are confident we can do it here." 

What is remarkable, however, is that an admin fee of £1.50 per month will be charged on top of a 0.3% annual product investment management charge. According to the provider this is significantly lower than the average UK cost for pensions, including all hidden charges, which in many cases it says amounts to annual management charges of 1.5%.

Defending the choice for a sole default option Nilsson explained: "Our experience and research shows that for most members, choice is a burden.  And the fact is, where there is choice, 95% end up in the default fund – so why not simply give people a full service and relieve them of this burden?"

The Danes also announced there will be an auto enrolment compliance solution which will make it "easy for employers to meet their obligations under the auto enrolment regulations".

First published 01.11.2011

azeevalkink@wilmington.co.uk