There are plenty of options on the domestic market for the successful allocation of pension assets
In 2017, LHV’s investment team made investment decisions directed towards Estonia in the amount of 170 million euros on the account of actively managed pension funds. Most of the investments were made into OTC bonds in the case of which LHV was the sole investor. Finding investment opportunities in such volume assured us that there are plenty of options on the domestic market for the successful allocation of pension assets to start a pension fund investing only into Estonia whenever possible.
Positive experience of other countries
While a pension fund investing exclusively domestically is something completely new in Estonia, they are common in our neighbouring region. For example, in Sweden there are dozens of funds investing 100% on the domestic market.
Developing the domestic market
On a global scale, Estonia is a small country with a gradually growing economy. To ensure the successful functioning of the fund, LHV as the management company of the pension fund, will be active on the market to ensure the creation of new investment instruments.
We believe that pension assets must be involved in the economy of the state where people are going to spend their retirement later.
Confidence is contagious
The larger the part of the pension assets finding its way to the Estonian economy, the better our economy will perform. Pension fund investing into the domestic economy is also the first indicator of trust for foreign investors. LHV Varahaldus is investing 1.5 million euros into the units of LHV Pensionifond Eesti 100. According to LHV’s assessment, if all the appropriate circumstances align, domestic pension funds could invest up to 2 billion euros into Estonia in the course of 5 years.