Admicasa introduces new fee model for BVG funds

The real estate and services company Admicasa is introducing a new fee model on June 1, which will abolish management fees and replace them with a management fee that will only cover the actual costs of asset management. The new "fee model 23" is intended to benefit policyholders by reducing costs and increasing the performance of investments, Admicasa writes in an ad hoc release.

Terra Helvetica Immobilien-Anlagestiftung, which focuses on "affordable living", was the first client to sign up to the new model and welcomes the initiative as an important step towards permanently reducing management costs, according to the press release.

According to Admicasa, the new model is the result of an initiative by Serge Aerne, Chairman of the Board of Directors: he was disturbed by the fact that the management fees for assets managed by BVG investment foundations increase in line with the pension deposits under management, while the management costs remain the same or increase only marginally. Aerne is of the opinion that this fee policy is at the expense of BVG policyholders, who indirectly pay high fees for management services that could be offered much more cheaply. "My aim is to stem the flood of fees in the pension market," says Aerne. "Up to now, a lot of money has been earned with the management fee despite the inadequate performance of the pension deposits. We want to change this and thus make a direct contribution to safeguarding pensions". (ah)