OREANDA-NEWS. October 21, 2009. Sampo’s mandatory funded pension funds Sampo Pension 50, Sampo Pension 25 and Sampo Pension Intress have adopted a resolution to abolish a subscription fee from the year 2010. Besides, the management fee of the fund Sampo Pension 50 will be lowered next year, reported the press-centre of Sampo Bank.

The Supervisory Board of Danske Capital AS has adopted a resolution to stop charging a fee for the subscription of the units of Sampo’s mandatory funded pension funds from the 1st of January 2010. At present the subscription fee charged by Sampo’s mandatory pension funds Sampo Pension 50, Sampo Pension 25 and Sampo Pension Intress is 1% of the value of the fund units subscribed for.

Abolition of the subscription fee means that 1% of the amount received by the fund in favour of the unit holder each month will remain entirely for the unit holder instead of the fund manager.

Also, transfer of fund payments to Sampo’s pension funds from other funds will be nearly twice cheaper than earlier. A seven-year long history of pension funds has testified that the investment strategy implemented by Sampo’s pension funds is favourable for unit holders, because the risk level associated with investments in Sampo’s pension funds is one of the lowest in Estonia, at the same time providing a competitive yield.

„We have decided to abolish the subscription fee with the aim of reducing our customers’ expenses. In the conditions of lower fees we can also encourage our potential customers to exchange fund units. In the light of the fact that in 2010 instalments in pension funds will be made only on a voluntary basis, our decision on the abolition of the subscription fee was meant to be a reward to those unit holders who are determined to continue making payments in our pension funds,” explained Silja Saar, managing director of Danske Capital AS.

From the 1st of January 2010, the management fee of the fund Sampo Pension 50 will be lowered, being dependent on the market value of the assets of the fund. If the market value of the assets of the fund exceeds EUR 100million, the fee for the management of the part of the assets exceeding this limit will be 1.665% per annum, whereas the fee for the management of the part of the assets remaining below the limit of EUR 100 million, will remain unchanged at 1.85% per annum.

Sampo’s mandatory funded pension funds are managed by Danske Capital AS. As of the 1st of October 2009 the total assets of Sampo’s mandatory funded pension funds amounted to EEK 1.9 billion (EUR 121 million).