Management fees of SEB’s pension funds coming down
The management fees of mandatory pension funds are determined by the total value of assets in the management company’s funds: the higher the total volume of the funds, the lower the management fees. At the end of 2015, the total volume of assets in SEB’s second pillar pension funds exceeded EUR 500 million, enabling a reduction in management fees.
A major change in the reduction of pension fund fees occurred last August, when the management fees of all second pillar pension funds dropped significantly. The reduction in fees this time around will have a smaller impact; however in the long term, it will make it more affordable for customers to accumulate their pensions.
The management fees of all of SEB’s pension funds will be lowered from 1 February 2016.
|
Management fee from 1 February 2016 |
Management fee until 31 January 2016 |
|
|---|---|---|
| SEB Energetic Pension Fund | 1,3759% | 1,3867% |
| SEB Conservative Pension Fund | 0,7689% | 0,7749% |
| SEB Optimal Pension Fund | 1,0521% | 1,0604% |
| SEB Progressive Pension Fund | 1,2140% | 1,2235% |
How will the management fees modified?
The management fee is a fee payable to the service provider, that is, the management company, for the management of funds and is usually expressed as a percentage of the value of the funds’ assets. The fee is deducted from the value of the funds’ assets on a daily basis and is already reflected in all the published performance indicators.
Management fees are calculated based on the total volume of the second pillar pension funds managed by the management company. An increase in the total value of the funds by EUR 100 million will translate into a reduction in the management fees for customers. The management fee calculated on each additional EUR 100 million is 10 per cent lower than the management fee on the previous EUR 100 million. The amounts of management fees will be modified once annually, at the beginning of the year.
