Pricing model for mutual funds

Management fee

The management fee you pay covers the actual management of the fund and will vary according to the fund you choose. This is the income basis for the mutual fund manager. The fee is stated as an annual percentage, but is charged to the mutual fund daily.

For example, if you have NOK 10 000 in an equity fund, with a management fee of 0.85 per cent over one year, you can expect to pay around NOK 85 annually. The cost is charged via the daily mutual fund rate.

Why is DNB launching a new pricing model for its mutual funds?

We are introducing a new pricing model for all Norwegian-registered DNB mutual funds from 1 January 2023. The model will make it easier for you to see what you are paying to whom for saving in mutual funds.

The aim is to clarify which services you are paying for and who receives the payment. The model also satisfies new instructions from the authorities.

What does the new pricing model involve?

With the new pricing model, the costs of saving in mutual funds are split in two. The cost consists of a management fee to the mutual fund manager and platform fees to the distributor who offers the fund via its system. The overall price for saving in mutual funds with the new pricing model will be either the same or lower than before.

How will the fund costs be charged under the new pricing model?

The management fee is charged to the fund daily. The platform fee is also calculated daily, but is paid quarterly. You can choose how you want to pay the platform fee yourself.

You can easily make this decision in the Spare app or with online banking. You’ll receive information from us when the choice of payment method is available.

What do I have to do as a customer under this new pricing model?

From 2023, you can select your chosen payment method for platform fees either in the Spare app or in the online bank. You’ll receive information from us when the choice of payment method is available.

If you choose to have it charged to the mutual fund, a small number of mutual fund shares will be sold to cover the platform fee.

Does the new pricing model apply to all of the mutual funds I have at DNB?

To start with, the new pricing model will apply to all Norwegian-registered DNB mutual funds. If you have external mutual funds or DNB Luxembourg-registered mutual funds, you can continue using the old pricing model until further notice.

What is the difference between the old and the new pricing models?

In the previous pricing model, the mutual fund was charged a management fee that included the cost of both management and distribution. The distributor got its payment in the form of a soft commission from the manager.

In the new pricing model, the costs of saving in mutual funds is split in two, so you can see what you are paying to whom for saving in mutual funds. The management fee is charged to the fund daily. The platform fee is also calculated daily, but is paid quarterly. You can choose how you want to pay the platform fee yourself. You can choose to have the platform fee deducted from a bank account at DNB or from selling shares.

You can easily make this decision in the Spare app or with online banking. You’ll receive information from us when the choice of payment method is available.

How much is the platform fee in NOK?

If you have 100 000 in an equity fund, you need to pay NOK 75 in platform fees every quarter. The equivalent amount in an index fund costs NOK 25 per quarter in platform fees.

Is it the same price for all DNB mutual funds?

The price depends on whether you have an equity fund, index fund, balanced fund or fixed-income fund.

See the different prices here

How much do I have to pay in platform fees per year?

Equity fund 0.30%

Index fund 0.10%

Balanced fund 0.25%

Fixed-income fund 0.20%

What are platform fees?

The platform fee is what you pay DNB as the distributor of the mutual fund. The fee covers the services we provide to you as the saver in the mutual fund, for example different platforms such as the Spare app and the online bank. These services are available to all of our mutual fund customers, regardless of which mutual fund you buy in DNB.

The size of the platform fee is determined by whether you choose to save in an actively managed equity fund, index fund, balanced fund or fixed-income fund.

How do I change the account to which the platform fee is charged?

You can change the account to which the platform fee is charged in the Spare app or in the online bank. In the Spare app, first select Me. Then click on the gear icon in the top right and Select Account. In the online bank, make the change under Saving and investing and My mutual funds. Choose mutual fund settings to change account.

Are platform fees paid from a bank account tax deductible?

Platform fees paid from a bank account are tax deductible. You are responsible for claiming this deduction in your tax return. We will send you a cost report in good time before you need to submit your tax return.

Are platform fees paid from selling shares tax deductible?

Shares in a share savings account

If you choose to pay the platform fee by selling shares, this will be a withdrawal from a share savings account. Withdrawals from share savings accounts that exceed the value that was deposited (cost price/acquisition value), as well as utilised shielding, are taxable.

The platform fee is tax deductible. You will be sent a cost report well in advance of having to submit your tax return.

Mutual fund shares outside of the share savings account/general saving in mutual funds

If you choose to pay the platform fee by selling shares outside of a share savings account, this will be considered a taxable realisation. Gains (or losses) are taxable (or deductible) according to applicable rates of share and income tax.

You can claim a deduction for the platform fee that is charged when selling mutual fund shares. You will be sent a cost report well in advance of having to submit your tax return.

Do I get a tax deduction for platform fees paid for saving in mutual funds in individual pension savings (IPS)?

When saving in mutual funds through individual pension savings (IPS), the platform fee must be paid by debiting a bank account. The platform fee is deductible, but the total deduction for defined contributions, premiums and costs (including platform fees) of the Individual pension savings (IPS) is limited to 15,000 per year. You are responsible for claiming this deduction in your tax return. We will send you a cost report in good time before you need to submit your tax return.

How do I enter the platform fee on my tax return?

In the tax return, the platform fee you have paid must be entered under the Finance, Share savings account section. Please note that only platform fees that have actually been paid are deductible.

For example, platform fees for the fourth quarter are not charged until the next calendar year.

How can I contact you with questions about the new pricing model?

Our mutual fund centre is here for you if you have any questions. Feel free to call us on 22 47 40 00 weekdays between 09.00 and 15.00.

How are A mutual funds affected by the new pricing model?

All A mutual funds use the old pricing model. Of these, Norwegian-registered DNB mutual funds will switch over to the new pricing model. With the new pricing model, the mutual fund costs are split into two payments. The cost consists of management fees to the mutual fund manager and platform fees to the distributor who offers the fund via its system. The overall price for your saving in mutual funds will either be the same or lower than before.

From January 2023, you can select your chosen payment method for platform fees either in the Spare app or in the online bank. You’ll receive information from us when the choice of payment method is available. As standard, the platform fees will be deducted from your account, but you can change this so that the mutual fund is charged instead.

How are N mutual funds affected by the new pricing model?

N mutual funds are already on the new pricing model. The platform fee is currently deducted from your account, but from 2023, you can opt to pay by selling mutual fund shares. You’ll receive information from us when the choice of payment method is available. If you would like to continue having it charged to your account, you do not need to do anything.

How can I see which payment method I've chosen?

You can see which payment method you’ve chosen in the Spare app. You can see this by clicking on “Me” in the menu, then pressing the gear icon in the top right – “Platform fee for mutual funds”. Here you’ll see which payment method you’ve chosen.

You can also change payment methods for platform fees here.

Which payment method for platform fees pays off?

The difference between the payment methods is very minimal for most people, but please note that there will be a tax realisation if you choose to have your mutual fund charged.

Will the letter A or N still be used after the mutual fund name?

All mutual funds with the letter N after them will get the letter A instead during the course of 2023. The change does not affect the mutual fund’s pricing model, and you do not need to do anything.

How are R mutual funds affected by the new pricing model?

R mutual funds will stay on the old pricing model until further notice, but will no longer be available to new customers. Existing customers will be able to keep their savings or buy additional shares.

Why do you have to charge a fee for distribution when DNB manages the mutual fund itself?

DNB distributes both its own mutual funds and mutual funds from external managers. DNB mutual funds can also be bought from other distributors. To meet the regulatory requirements, the mutual fund cost is split between the management fee and the platform fee. This makes it easier to see what you are paying the manager (DNB Asset Management) and what you are paying the distributor (DNB Bank ASA).

Can I select deduction of platform fees from an account at another bank?

You cannot request that platform fees be charged to an account at another bank.

Does the new pricing model apply to external funds as well?

DNB offers a number of external mutual funds. These will still be available on our platforms. The choice of mutual funds consists of mutual funds with both the old and the new pricing model.

The new pricing model will be gradually introduced for external funds as well, but this may take some time.