Banks, Estonia, Financial Services, Pensioners

"We continue to offer our clients actively managed pension funds with the most favorable management fees. This is already the second time for us to be lowering management fees this year," Kristjan Tamla, CEO of Swedbanki Investeerimisfondid, said. 

Tamla said that where last year the weighted average management fee of Swedbank's second pillar funds was 0.82%, the average will drop by as much as one-fifth to 0.66% from September. 

He added that lower fees mean a saving of almost three mln euros a year for clients given the present volume of Swedbank's second pillar funds.

Also the investment restrictions applicable to second pillar funds will ease significantly from September. According to Tamla, the legislative amendment will significantly expand the investment opportunities of pension funds. 

"To reflect the percentage of stocks in a fund, we will also change the names of second pillar funds in September. The number in the name will reflect the maximum percentage of stock investments," he said.

Tamla described the current year as one of the most successful for funds when it comes to yields.

"All of Swedbank's mandatory and voluntary pension funds demonstrated a good result. Almost all stock and bond markets where Swedbank funds are invested helped to increase pension savings," he added.