Placera.se: CB Fonder comments on the deposit fee in CB Save Earth Fund

What does it mean for a fund to have a deposit or redemption fee? In a letter to the Placera editorial team, a reader questioned the fees of CB Save Earth Fund, a fund recommended by Placera’s fund expert, Pär Ståhl, in his children’s savings portfolio. The reader questioned the fund’s deposit fee of five percent.

In CB Fonder’ Save Earth Fund’s KIID document, it states that the fund has a maximum deposit fee of five percent.

This is a fee that doesn’t actually exist; CB Fonder has never charged the fee or even considered it. We will remove it in the next update of the prospectus and KIID to make it clear what applies, as many people see it and become puzzled.

The reason for the fee is that one should never prohibit anyone from investing in a fund. The fee is a way to make it unattractive to invest in the event the fund becomes too large, and the manager assesses that more money would hinder the ability to deliver the best possible return.

Read more here. (In Swedish).