SEB forgoes the redemption fee for 2nd pension pillar funds and reduces the management fee for the Conservative Pension Fund

Starting from 10 January 2017, SEB 2nd pension pillar fund units can be bought as well as sold at the net asset value of unit, since SEB is forgoing the redemption fees for 2nd pension pillar funds. In addition, the management fee for the Conservative Pension Fund was reduced to an annual 0.49 per cent, effective from 1 January.

In January, the new wording of the Investment Funds Act will enter into force, establishing maximum limits on the redemption fees of mandatory pension fund units, being respectively 0.05% for bond funds and 0.1% for other funds. SEB is forgoing the redemption fee for 2nd pension pillar funds in full.

The redemption fee for 2nd pension pillar funds, which before the change in the law was 1%, will be charged when switching pension fund units, i.e. upon transfer of money from the previous fund to the new fund. By this amount, the sum for which you could acquire units of the new pension fund was reduced.

“Abolishing the redemption fees for 2nd pension pillar pension funds is motivated by the establishment of a legislative restriction as well as by the wish to simplify the structure of pension fund fees for our clients. An issue fee for units has not been charged by 2nd pension pillar funds since 2011,” said Sven Kunsing, Chairman of the Management Board for SEB Varahaldus.

In addition to forgoing the redemption fees for the 2nd pension pillar, i.e. the mandatory pension funds, the management fee for the low risk level SEB Conservative Pension Fund also became more favourable for clients starting from 1 January. The new annual management fee is 0.49% instead of the previous 0.95%.

“At the end of the last year we also launched a new passive 2nd pension pillar investment strategy – SEB Energetic Pension Fund Index, primarily designed for those clients who have significant investment experience, good knowledge of the mechanisms governing the functioning of financial markets and investment-related risks. Thinking about those clients, whose endowment period is shorter and who value a low-risk fund, we reduced the management fee for the SEB Conservative Pension Fund to 0.49%, which is now as favourable as the management fee of the SEB Energetic Pension Fund Index,” Kunsing said.

For more information:

Julia Piilmann
Communications Manager
Marketing and Communications Division
SEB Pank

Phone +372 665 5340
Address Tornimäe 2, 15010 Tallinn
E-mail julia.piilmann@seb.ee
www.seb.ee

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