Assembly approved fees for 2014

The Assembly of Kosovo on 20 November 2013 has approved the management fee for Kosovo Pension Savings Trust (KPST) for the year 2014, which was suggested for approval by the Governing Board of KPST.

Governing Board had requested the approval of a management fee consisting of: investment fee of 0.40% (2013: 0.38%) and operational fee of 0.13% (2013: 0.15%). In total the contributors to KPST as of 1st of January 2014 will be charged with a management fee of 0.53%; which actually is the 7bp lower than until 19th of May 2013.

Changes to the management fees came as a result of changes to the investment strategy, which is expected to enforce the transition from risk diversification to risk management. This involves a higher demand for asset managers thus increasing asset investment costs. Nevertheless the whole change is aiming, solely and primarily, at protecting the interests of KPST contributors. This is done through relocation of investments from investment categories involving a higher risk level and to investment categories which are more protected from oscillations in the financial markets.

Alternatively, reduction of operational fees came both due to conclusion of capital investments in 2013 and higher efficiency of KPST staff, which has decreased financial needs for operation.

As a reminder, although KPST will maintain also in 2014 the same management fee rate as after 19 May 2013, Kosovo Pension Savings Trust will certainly continue to be the institution with the lowest management fee in the region.