Fee Structure Overhaul: A Win for Pension Savers
Folksam LO Tjänstepension is set to eliminate the fixed fee and reduce variable fees for all members who signed up for Avtalspension SAF-LO from 2009 onwards. This change is effective from January 1, 2025. The rationale behind this decision is to continue offering competitive fees, a core principle since the fund’s inception in 1998, and to encourage more active choices among members. This initiative is part of a broader effort to reach new customers and provide them with a fair pension. (Source: 2024 ÅRSREDOVISNING, page 4)
Strategic Shift in Sustainable Equity Investments
In the spring of 2024, Folksam LO Tjänstepension replaced the Danske Invest Global Index Restricted SI fund in its ‘Fritt val’ (Free Choice) offering with the Handelsbanken Global Index Criteria fund. This new fund is an index fund aiming to closely track the Solactive ISS ESG Screened Paris Aligned Global Markets Index, which excludes companies not meeting sustainability criteria. The Handelsbanken fund is classified as an Article 9 fund, signifying its sustainability objective. The risk level remains unchanged at four on a seven-grade scale, but the annual fee for customers is lower at 0.41 percent, compared to the replaced fund’s 0.53 percent. (Source: 2024 ÅRSREDOVISNING, page 8)
Enhanced Advisory Capacity to Reach More Members
Folksam LO Tjänstepension plans to expand its advisory capacity during 2025. This expansion is intended to enable the fund to meet with more customers, particularly new members, and provide them with fair pension advice. This initiative follows a positive trend break in sales during the second half of 2024, after a 14 percent decrease in the first half, largely due to reduced referrals from customer advisory services. Measures have been implemented to improve both the quality and quantity of advisory meetings, including a new resource planning model that has proven successful. (Source: 2024 ÅRSREDOVISNING, page 4, 8)
Entrélösning Undergoes Product Review
A product review of the ‘Entrélösning’ (Entry Solution) for SAF-LO and KAP-KL/AKAP-KR is currently underway. The ‘Entrélösning’ is a default investment option with a strategic allocation based on the insured’s age, shifting from higher-risk equity funds to lower-risk bonds and fixed-income securities as retirement approaches. (Source: 2024 ÅRSREDOVISNING, page 8)
Boardroom Refresh: New Perspectives Join the Helm
At the annual general meeting on April 11, 2024, Marcus Svedberg (Folksam) was elected to the board of directors, while Mats Davidson (Folksam) was discharged. (Source: 2024 ÅRSREDOVISNING, page 8)
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