VIAC administration fee is capped at a maximum of 0.40% per year. So regardless of your chosen strategy, you will not pay more than 0.40% administration fee per year to VIAC.
With VIAC, the management fee is only charged on the portion of your assets invested in securities and remains at 0.52% per year. Cash is managed free of charge and earns interest. For a strategy with 50% equities and 50% cash, the effective administration fee is 0.26% (50% x 0.52%) of the total assets. A strategy with 99% equities and 1% cash would have effective administration costs of around 0.51% (99% x 0.52%) without the fee cap. However, the fee cap limits the effective administration fee to 0.40%.
The following chart shows the development of the effective administration fee depending on the investment ratio:
In the end, the fee cap means that invested assets exceeding 76.9% of total assets are managed free of charge. All VIAC 80 and 100 strategies benefit from the fee cap. The fee cap applies analogously to customized strategies – with a high investment ratio, fees are also limited to 0.40%.
Why was the fee not reduced for the conservative strategies as well?
Here we are already at an extremely low level before any fee reduction, because unlike our competitors, we do not charge the fee on the cash portion. However, since the cash portion also incurs costs, there is currently no scope for even lower fees here. Already now, the conservative strategies are 3x cheaper than with the digital competitors and up to 8x cheaper compared to traditional solutions.
Referral program allowances apply in addition to the fee cap. For example, if you choose the Global 100 strategy and invite friends to VIAC, the effective administration fee is less than 0.40%!