Starting in July, SEB will offer the lowest management fee to its passive pension fund customers

As of 1 July, SEB will lower the management fee of the passively managed Energiline Pensionifond Indeks from 0.49 per cent to 0.29 per cent, thus offering the lowest management fee on the market to the customers of the passively managed pension fund.

SEB’s customer survey revealed that only one in six respondents would prefer passively managed funds to those managed by fund managers. Close to 40 per cent of the respondents are not ready to make pension investments themselves and manage the related risks, and 57 per cent want to consult a specialist before making an investment decision, to find the best solution for their saving needs.

“There are not many investors on the market that would be ready to start accumulating pension assets in a passive fund; however, they are certainly more informed pension collectors that want to make their own decisions and take responsibility. Since such investors only need limited investment and consultation services from us, it is understandable that a low fee is important to this type of customers. Our goal is to provide the best competitive service to all customer segments, which is why we will be lowering the annual management fee for the SEB Energiline Pensionifond Indeks from 0.49 per cent to 0.29 per cent. At the moment, this is the best offer on the market for customers who are willing to take responsibility for their investments in their pension fund,” said Indrek Holst, Chairman of the Management Board of SEB Elu- ja Pensionikindlustus.

Forecast: fees of actively managed funds will also decrease

According to Indrek Holst, the fees of actively managed funds are also exhibiting a downward trend. “Our customer survey indicated that a majority of customers appreciate funds that are actively managed by fund managers, wish to receive investment advice from specialists and, finally, expect competitive yields. For actively managed funds, the ultimate yield is the most important factor; however, a competitive price is also important. This is why we lowered, at the end of last year, the management fees of SEB Konservatiivne Pensionifond at a faster pace than prescribed by law in cases where the volume of assets has increased. Moreover, the issue and redemption fees for pension funds have dropped to zero per cent. It is foreseeable that the fees will likely decrease further,” Holst added.

SEB offers its customers four actively managed pension funds and one passively managed pension fund. When making investments, SEB’s passive pension fund follows the international market indexes, without any active management of the assets in it and without making any adjustments in the fund’s portfolio on the basis of the situation on the financial markets.

Additional 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

Read our news feed on Twitter www.twitter.com/SEB_Eesti
Follow us on Facebook www.facebook.com/seb.eesti
View the video archive on YouTube www.youtube.com/user/sebeestivideo