19.05.2025
Starting from 2 September, LHV will discontinue its pension funds under the name of Roheline and rename its II pillar pension funds.
‘The II pillar is the main financial safeguard for most Estonians, providing essential support during retirement. Therefore, making decisions related to the II pillar should be straightforward, and growing one’s pension savings should be as effective as possible,’ said Vahur Vallistu, Chairman of the Management Board at LHV Varahaldus. He emphasised that a client-centred approach, boldness and innovation are at the core of LHV’s identity, which is why they continuously seek new ways to create more value for investors who have entrusted their pension assets to LHV. ‘Our goal at LHV is to be the most successful long-term grower of pension assets in Estonia. We measure our success by consistently outperforming the market average rate of return over decades, which requires flexibility, dedication and the courage to lead. These changes lay the foundation for delivering even better results to LHV’s clients in the future,’ Vallistu noted.
From 2 September, LHV’s II and III pillar pension funds, collectively known under the name of Roheline, will cease to operate and will be merged with other LHV funds. The S and M pension funds of LHV will also be combined. ‘The funds under the name of Roheline were established to invest in companies contributing to the green transition. However, the complex and frequently changing regulatory landscape limits the investment potential and outlook for such funds. On top of this, the geopolitical and market environment has changed significantly, making it unwise to continue with these funds in their current form,’ Vallistu explained.
As a result of the changes, LHV clients will have the option to choose from four actively managed pension funds to grow their savings. ‘We want to offer Estonian people greater confidence and clarity when saving for the future. Our guiding principle is that everyone should be able to find a pension fund that suits them and aligns with their personal values,’ Vallistu said.
Starting in September, LHV’s actively managed pension funds will be named Julge, Ettevõtlik, Tasakaalukas, and Rahulik. According to Vallistu, these new names will bring greater transparency and help clarify the content and strategy of each fund. He added that the changes are both quantitative and qualitative. ‘This is not change for change’s sake: it allows us to offer a better service with higher quality for clients. The updated funds are built on principles that allow them to perform in various economic conditions. They will continue to be managed by Estonia’s largest investment team, which constantly monitors the economy and financial markets,’ Vallistu emphasised.
He also acknowledged that navigating the pension fund landscape can be challenging, as unfamiliar terminology can often be overwhelming. ‘LHV is probably not entirely innocent either, since we have sometimes made things more complicated than they need to be. This is why we focused on making the new fund names easy to understand. These names are relatable and help provide a sense of security that the investments are being made in line with the individual’s risk tolerance,’ Vallistu said. He noted that saving for retirement is most effective and satisfying when a person trusts the asset classes they invest in and has a clear understanding of where their money is going.
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