Unsuccessful managers to be culled: PPM report

SWEDEN - Managers that fail to achieve a specified market share of Sweden's Premium Pension Authority (PPM) may be booted from the system under a raft of reforms proposed to cut down the 700 plus funds registered in the system.   In its report 'Difficult waters? Premium pension savings on course', presented to minister of finance Sven Erik Osterberg this week, the government-commissioned committee set up to review changes to the PPM also recommended charging managers both entrance and annual fees to participate, as reported by Global Pensions in October.   While the report, led by Professor Karl-Olof Hammarkvist (pictured) of the Stockholm School of Economics, did not specify charges, it referred to the Danish Folkeboersen, which charges an entrance fee of DKR15,000 and DKR12,000 annually.   It should be possible to introduce the option of setting a time limit within which a fund should achieve a certain market share in the system, the report noted. Funds that cannot meet the time limit would subsequently be excluded from the selection.   The long term aim is to cut the number of funds to between 100 and 200.