Fund Fees: How They Work
When you invest in a fund, you pay ongoing fees that cover management, administration, and distribution. All prices and performance figures reported by Quartal already reflect these deductions.
Types of Fund Fees
Management Fee
The management fee is the primary ongoing cost charged by the fund company. It covers:
- Active fund management
- Administration and custody
- Information and reporting (annual and semi-annual reports)
- Distribution and supervisory fees
The fee is expressed as a percentage per year and is deducted daily as 1/365 of the annual rate. You only pay for the days you hold the fund.
For Swedish and Finnish-registered funds, most administrative costs are already included in the management fee. For Luxembourg-registered funds (SICAV structure), the following additional fees may apply outside the management fee:
- Administration fee: up to 0.40%
- Custody fee: up to 0.125%
- Other costs including taxes and reporting
Management Fees and Other Administrative Costs (Fees)
Within the EU, the standardized concept “Management fees and other administrative or operating costs” (commonly abbreviated as “Fees”) is used to enable cost comparison across European funds. For most Swedish funds, this figure is equal to or very close to the management fee. For some funds, additional transaction costs, certain taxes, or performance fees are added.
Performance-Based Fee
Some funds charge a fixed management fee plus a variable performance-based fee. The performance fee is calculated on returns generated above the fund’s benchmark index over a rolling 12-month period. Only the portion exceeding the benchmark is subject to this fee.
Quartal’s own funds do not charge performance-based fees.
Subscription and Redemption Fees
Quartal does not charge subscription or redemption fees on its own funds.
If you trade an external fund through Quartal, such fees may apply. Always check the fund’s fact sheet before investing.
Other Costs
“Other costs” refers to transaction costs, certain interest costs, and brokerage charges that occur at the time of trading. These are not fixed in advance.
For Luxembourg-registered funds, this category may also include custody fees, administrative charges, and certain taxes. These can total up to 0.05% of fund assets.
Norman Amount
The Norman amount is a standardized SEK-based cost estimate showing the total cost of a monthly 1,000 SEK investment in a fund over 10 years. It is designed to make percentage-based fees more tangible.
The calculation assumes:
- Monthly savings: 1,000 SEK
- Investment period: 10 years
- Assumed annual return before fees: 6% (equity funds), 4% (mixed funds), 2% (fixed income funds)
The Norman amount does not account for discounts from entities such as the Swedish Pensions Agency. Quartal updates this figure quarterly.
Distribution Fee
Quartal distributes both its own funds and funds from external companies. For distributing external funds, Quartal receives a distribution fee from the fund company, typically around 50% of the management fee. This does not represent an additional cost to you as an investor.
The distribution fee enables Quartal to conduct fund analysis and provide advisory services.
Summary of Fee Types
| Fee Type | Who Pays | Fixed in Advance |
|---|---|---|
| Management fee | Deducted from fund daily | Yes |
| Performance-based fee | Charged if fund exceeds benchmark | No |
| Subscription/redemption fee | Charged at trade (external funds only) | Yes |
| Other costs (transaction, brokerage) | Deducted from fund at time of trade | No |
