In third quarter pension funds’ assets exceeded 5 billion, investments in Estonia continued to decrease
In the third quarter of 2020, the volume of pension funds’ assets invested in Estonia decreased by 0.05 percentage points as compared to the second quarter, making up 12.84% of the total volume of the funds. The total value of pension funds exceeded 5 billion for the first time ever.
In the third quarter the total value of pension funds exceeded 5 billion for the first time, 12.84% of the assets being invested in Estonia. In absolute growth terms, the 15 million euros were added to the Estonian investment, increasing the volume of investments to 645 million euros. At the same time, the values of the pension funds’ assets grew by nearly 106 million euros, which is behind the rapid growth of the second quarter when 466 million euros came in the pension funds, which was due to the fall of the total volume of pension funds in the first quarter to the extent of 292 million euros as compared to the fourth quarter of 2019. The latter was due to the falling of prices on the world stock and bond markets.
Total percentages by quarters since 2016
Investments of pension funds to Estonia remain stable
LHV continues to invest the most of its pension funds’ assets in Estonia – 22.52% of its total investments have been made in Estonia (decrease of 0.05 percentage points as compared to the second quarter). In terms of investments in Estonia, Swedbank follows with 11.48 percentage points (increase of 0.04 percentage points as compared to the second quarter). In the third quarter the volume of SEB’s investments in Estonia grows by 0.21 percentage points, reaching 7.10%. Luminor’s investments in Estonia decreased in the third quarter by 0.07 percentage points while being 4.14% of the volume of total investments.
Over half of the assets invested in Estonia are in LHV
Out of the 645 million euros invested in Estonia, the biggest contribution has been made by LHV, the funds of which contribute in total 51% or over 329 million euros. It is followed by Swedbank with 36 percent, contributing 232 million euros; SEB 10% and 66 million euros and Luminor with nearly 3 percent and 17 million euros. Tuleva Maailma pension funds have made no investments in Estonia.
The Estonian Chamber of Commerce and Industry is observing and analyses investments of pension fund assets in Estonia already since the beginning of 2016. Back then, only 5.48 percent (147 million euros) of the assets of pension funds were invested in Estonia. The lowest total volume of investments was recorded in the first quarter of 2017, when it was 5.01%. The highest numbers of growth were observed in the fourth quarter of 2017 when the growth in the volume of investments exceeded two percentage points. The positive trend started after the laws were amended with the aim of alleviating investment restrictions on pension funds.