The PZU Group will cancel asset management fees for funds managed under employer-sponsored pension programs (PPK) during the first 12 months to follow PPK launch in July. The company expects to secure a 30% share in the PPK market.
„In the first year we will not charge asset management fees for funds under PPK,” said PZU CEO Paweł Surówka.
After that first year, PZU will keep the management fees below the maximum ones in the case of the most expensive funds, while for the cheapest and safest funds the fees will be kept at half the maximum rate, said Marcin Żółtek, CEO of the group’s pension fund management company PTE PZU, during a conference devoted to PZU’s PPK-related plans.
„The volume of assets to be managed makes these projects profitable, even with a minimum fee”, said Żółtek, while adding that the returns are to be expected long-term rather than in the first several years of PPK functioning.
„We are hoping for a market share representing some 30% of the total,” Żółtek told a conference. „We want our share in the PPK market to be adequate to the group’s share in the group insurance market and insurance as such,” he added.
PZU TFI aims to offer eight funds within the frame of PPK, in line with the requirements specified by the PPK law. PZU will also offer employers assistance of over 300 corporate client advisors, the group said.
Poland begins the roll-out of the PPK schemes as of July 2019. Poland has mandated employers to select asset managers to run the new pension funds, with money coming from paychecks, an employee contribution and a minor add-in from the state. Large-cap firms begin the process in July, followed by mid-caps in early 2020, small caps later that year and the public sector from 2021.
