What will change?
Previously, the fees paid by the customer consisted of the fund’s management fee shown on its price list and the fees charged by the funds that the solution fund invested in. The total cost of these is referred to as ongoing charges, the amount of which has varied annually according to the solution fund’s investments.
In future, the management fee charged by the fund management company will be used to cover the fees charged by the funds being invested in. As a result, the management fee of the solution fund will not significantly differ from the annual ongoing charges and the customer will have a very precise idea in advance of the fees charged for the fund.
However, it should be noted that the performance-based portion of the management fees charged by the mutual funds or collective investment schemes that the solution fund invests in can still be charged from the fund that is being invested in.
Which funds does the pricing change concern?
Below you can see the funds that are affected by the pricing change as well as information on management fees that will come into effect on 3 January 2018:
|Fund name||Ongoing charges in 2016||Management fee as of 3 January 2018|
|Danske Invest Compass Liquidity||0.88%||0.90%|
|Danske Invest Compass 25||1.07%||1.05%|
|Danske Invest Compass 50||1.42%||1.40%|
|Danske Invest Compass 75||1.64%||1.60%|
|Danske Invest Compass Equity||1.94%||1.95%|
|Danske Invest Emerging Markets Equity||1.86%||2.00%|
|Danske Invest 2020||1.56%||1.25%|
|Danske Invest 2030||1.96%||1.95%|
|Danske Invest 2040||1.97%||1.95%|
|Danske Invest Navigator||1.67%||1.70%|
The ongoing charges of most solution funds will slightly decrease compared with the most recently confirmed figures.
Where can I get more information on costs?
The management fees of solution funds are shown in the fund price lists and the annual ongoing charges in the funds’ key investor information documents. The updated price list and the funds’ key investor information documents will be available as of 3 January 2018.