Charges cap proposed for Swedish PPM

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The Swedish Investment Fund Association has said it looks favourably on a proposed cap on fund charges put forward by the Swedish Pensions Agency for funds listed on the PPM platform as part of a consultation paper sent to all participating fund providers.

The proposals stem from data suggesting that certain fund providers have set their gross fees quiet high, meaning that despite the rebate that PPM seeks, the post-rebate net cost to investors remains high.

“The new proposal means that funds with the highest charges can no longer apply them within the Premium Pension system,” the Agency stated this week.

“Today, this affects 279 funds out of a total of 846. If the changes started to apply from January 2015 it is estimated that 6.7 million pension savers and pensioners would save SEK150m (€16.4m) annually in lower fund charges.”

Pia Nilsson, chief executive of the Fund Association, said in a written comment that “I feel it is good that [they] are addressing the problem that some players who have joined more recently have applied a very high gross charge for their funds.”

The main drawback with the proposals now out for consultation may be that certain types of funds, such as emerging markets funds, or those charging performance related remuneration, may be adversely affected, the Association has previously noted.


Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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