On 17 March 2020, we launched Estonia’s first green pension fund — LHV Pension Fund Green, for promoting environmental sustainability.
In 2019, 360 new sustainability funds launched in Europe. Fifty of them make investments solely targeted at solving climate problems. In 2019, a record of 120 billion euros flowed into such funds in Europe, which will increase the total volume of these funds to 670 billion euros.
Green values in investment activities are not a temporary phenomenon but rather a strong and fast-growing trend.
We believe that, like elsewhere in Europe, Estonia has enough green-minded people who want their retirement savings to follow sustainable principles connected to a green worldview.
On 17 March 2020, we launched Estonia’s first green pension fund. We had been working on in for exactly a year. LHV Pension Fund Green is meant for anyone who cares even a little about green philosophies and believes that capital investment should be profitable in the long-term and environmentally sound and sustainable.
The fund always invests 75% to 100% into equity. At least half of the portfolio is invested in investment funds that abide by sustainability principles or have environmental themes. All individual investments are similarly environment-based - they are related to renewable energy, energy performance, water technology, reducing pollution, waste management, ecological support activities, responsible forestry, and agriculture. According to the prospectus, the management fee is 0.49% per year. The fund manager is Joel Kukemelk.