First Time Over 10 Percent of Pension Funds Assets Invested into Estonian Economy

The year 2018 started in a very positive way in terms of investing pension funds assets into Estonia. For the first time, the share of investments made to Estonia exceeded ten percent of the pension funds assets. While in the last quarter of the year 2017, a record amount of 9.59 percent of assets had been invested to Estonia, in the first quarter of 2018, this number grew to 11.03 percent.  

Estonian Chamber of Commerce and Industry is monitoring and analysing the investments of the pension funds assets to Estonian economy since the beginning of the year 2016. Back then the investments made by pension funds to Estonia amounted only 5.48 percent. On the quarterly basis the investment volumes have remained at 6 percent over that period of time, but during the last three quarters the share has significantly grown, doubling by today.

As of the end of the first quarter of this year, the largest investment into Estonian economy from the assets of the pension funds has come from LHV, amounting to approximately 67 percent of the total volume of the investments made by all pension funds into Estonian economy.

In total, over 407 million euros of pension funds assets have been invested into Estonian economy.

In the Chamber’s opinion, it is important that increasing amounts of the assets of the mandatory funded pensions are invested into Estonia, because this will boost the economic growth as well as competitiveness in Estonia. Therefore the increasing amount of investments is very positive to see.