Volume of investments of pension funds into Estonian economy decreased in the third quarter

During the third quarter of 2019, the volume of assets of pension funds invested in Estonia decreased by 1.21%. The decrease resulted mainly from the decrease of investments from Swedbank’s Pension Funds K2 and K3. LHV’s and Swedbank’s pension funds continue to invest the most in Estonia.

Investments of funds in Estonia are unfocused
Until the second quarter of 2018, the volume of the share of investments from Estonia of pension funds grew during consecutive six quarters. Since the third quarter of the year 2018, the fast growth of the share has stopped and grown only 0.4% as compared to the second quarter of the year 2018.

Decrease of the total volume of the third quarter is mainly due to the decrease in the assets invested in Estonia from Swedbank’s pension funds K2 and K3. In total, the volume of investments of Swedbank in Estonia fell by 43.7 billion euros. During the same period, the volume of investments made by LHV grew by 13.5 million euros, and SEB’s investments grew by 4.4 million euros.

LHV continues to be the organization that invests the most of its pension fund assets in Estonia – 24.61% of its total investments have been made in Estonia (growth compared to the second quarter is 0.43 percentage points). LHV is followed by Swedbank 10.32% (decrease of 2.76 percentage points as compared to the second quarter), SEB 7.17% (growth of 0.24 percentage points as compared to the second quarter) and Luminor 4.02% (decrease of 0.43 percentage points as compared to the second quarter).

Pension funds have invested over half a billion euros in Estonia

By today, 590.3 million euros have been invested in Estonia, which is 26 million euros less than last quarter. The total value of pension funds is 4.5 billion euros, which is 175 million euros more than in the second quarter of the year 2019.

Values of funds and share of their investments into Estonia:

	Total Fund Value €	Invested in Estonia	Comparison to second quarter
LHV Pension Fund Estonia	2,662,489	65.04%	2.93%
LHV Pension Fund Index	20,733,760	0.00%	0.00%
LHV Pension Fund L	882,843,909	26.30%	0.53%
LHV Pension Fund M	130,923,743	27.62%	0.31%
LHV Pension Fund S	55,642,228	13.39%	0.43%
LHV Pension Fund XL	188,852,743	21.60%	0.25%
LHV Pension Fund XS	22,181,503	11.30%	-0.44%
Luminor Pension Fund A	277,146,134	4.38%	-0.36%
Luminor Pension Fund A Pluss	60,553,076	3.06%	-0.68%
Luminor Pension Fund B	28,523,325	4.77%	-0.59%
Luminor Pension Fund C	16,009,780	0.00%	0.00%
SEB Energetic Pension Fund	131,675,012	6.46%	0.46%
SEB Pension Fund Index 100 (Energetic Pension Fund Index)	9,336,770	0.00%	0.00%
SEB Conservative Pension Fund	63,888,417	3.92%	0.43%
SEB Optimum Pension Fund	35,616,058	8.55%	0.93%
SEB Progressive Pension Fund	623,704,149	7.68%	0.17%
Swedbank Pension Fund K10 (K1) (conservative strategy)	66,291,076	12.02%	0.55%
Swedbank Pension Fund K30 (K2) (balanced strategy)	340,552,681	16.40%	-4.45%
Swedbank Pension Fund K60 (K3) (growth strategy)	1,060,225,421	9.65%	-3.29%
Swedbank Pension Fund K100 (K4) (share strategy)	386,782,412	6.73%	-0.02%
Swedbank Pension Fund K90-K99	7,321,134	0.00%	0.00%
Tuleva World Stocks Pension Fund	119,092,372	0.00%	0.00%
Tuleva World Bonds Pension Fund	6,816,028	0.00%	0.00%

 

The Estonian Chamber of Commerce and Industry monitors and analyses investments of the assets of pension funds into Estonian economy already since the beginning of the year 2016. Back then, only 5.48 percent of the assets of the pension funds (147 million euros) had been invested into Estonia. The lowest total investment volume was observed in the first quarter of the year 2017, when it was only 5.01%. The largest growth numbers were shown in the fourth quarter of the year 2017, when the growth of investments exceeded two percent. The positive trends started after amendment of the acts, which the state used to alleviate the investment restrictions on pension funds.