SEB reduced the management fees of SEB second pillar pension funds
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 value of the funds, the lower the management fees. At the beginning of 2017, the total value of assets in SEB’s second pillar pension funds exceeded EUR 606 million, enabling another reduction in management fees.
The management fees of SEB’s pension funds were reduced from 1 February 2017.
|Management fee from 01.02.2017||Existing management fee to 31.01.2017|
|SEB Energetic Pension Fund||1,3227%||1,3759%|
|SEB Optimal Pension Fund||1,0115%||1,0521%|
|SEB Progressive Pension Fund||1,1671%||1,2140%|
According to the regulation of the Ministry of Finance, the lowering of the rate of the management fee shall be halted when the management fee is less than 0.5%. Accordingly, the management fee of SEB Conservative Pension Fund and SEB Energetic Pension Fund shall not be lowered, since the rate of the fee for both funds is 0.49%, i.e. less than the minimum management fee to be decreased, stipulated in the regulation of the Ministry of Finance.
How will management fees be 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 per year. 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 of the market value of assets, i.e. the total volume of the second pillar pension funds managed by the management company. An increase in the total volume of the funds by EUR 100 million will translate into a reduction in the management fees for clients. 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 are modified once annually, at the beginning of the year.
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