Management fees of SEB second pillar pension funds to be lowered

As a result of the changes in legislation, the management fees of SEB second pillar pension funds will be lowered starting from 1 August.

The law prescribes the lowering of the management fee of mandatory pension funds according to the value of the fund’s assets. The current method provides for fund-specific reductions in management fees, for funds with a volume of more than EUR 100 million. According to the new method, the basis for the reduction will be the total volume of the second pillar pension funds managed by the management company, which in SEB’s pension funds exceeds EUR 500 million. In the future, every increase in the total volume of the funds by EUR 100 million will bring about a reduction in effective management fees. The management fee calculated on each additional EUR 100 million will be 10 per cent lower than the management fee of the previous EUR 100 million. The amount of management fees will be changed once a year, at the beginning of the year.

Sven Kunsing, Member of the Management Board of SEB Varahaldus: “Starting from August, it will be more favourable for all clients of SEB to invest into second pillar pension funds. In SEB’s pension funds, the current reduction of management fees prescribed in the effective law is only applied to SEB Progressive Pension Fund, the volume of which exceeds EUR 400 million, but now, in light of the new law, the effective management fees of all second pillar funds will be significantly reduced. In over 10 years of activity, pension funds have reached such a volume that it is reasonable to lower management fees.”

The management fee for pension funds is paid by all clients to the pension management company solidarily out of the pension fund, according to how much money is kept in the fund. It is a fee payable for management of the fund, usually expressed as a percentage value of the value of the fund’s assets. The fee is deducted from the value of the fund’s assets on a daily basis and is contained in all performance indicators published.

An overview of the management fees for SEB second pillar pension funds:

Additional information:

Evelin Allas
Communications Manager
Marketing and Communications Division
SEB

Phone +372 665 5649
Mobile +372 511 1718
Address Tornimäe 2, 15010 Tallinn
E-mail evelin.allas@seb.ee
www.seb.ee

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