Stockholm-based fund manager Lundmark & Co Fondförvaltning has just launched its new fund Highlight Sverige, an actively managed vehicle without a flat fee. Instead, the manager intends to only charge clients if the fund beats its benchmark. However, the performance fee is not insignificant, with Lundmark & Co Fondförvaltning aiming for 50 percent of the excess return.
Portfolio manager Erik Norström tells AMWatch the decision was taken due to the recent debate in Sweden about fund managers having to pay kickbacks to distributors. These distribution fees can often be quite high, with platforms like Avanza and Nordnet sometimes charging up to 50 percent of the fund's fee.
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