Banks, Estonia, Financial Services, Pensioners

International Internet Magazine. Baltic States news & analytics Thursday, 06.08.2020, 19:15

LHV to wind up investment fund investing in Estonia

BC, Tallinn, 11.11.2019.Print version
Citing the government's plan to make mandatory accumulation of pension savings into a pension fund optional in Estonia, LHV has decided to discontinue the business of LHV Pensionifond Eesti and to merge the fund that invests its assets in Estonia with LHV Pensionifond L, informed LETA/ BNS.

LHV Group said on Monday that where Pensionifond Eesti, run by its asset management arm LHV Varahaldus, has been investing pension assets primarily with a long-term outlook and in the local economy, making the second pension pillar optional does not support that strategy. 

According to LHV, fundamental changes to the principles of mandatory pension accumulation will directly affect the capability of funds to continue developing the Estonian capital market.

LHV Pensionifond Eesti will be merged with LHV Pensionifond L, of whose assets Estonian investments make up nearly one-third. The merger requires a clearance by the Financial Supervision Authority.

No actions by unit holders of the fund are necessary for the merger to take place. As a result of the consolidation, LHV Pensionifond Eesti will discontinue its business and its assets and liabilities will transfer to LHV Pensionifond L without a liquidation process. 

Pension funds of AS LHV Varahaldus have over 176,000 customers. LHV offers both actively and passively managed second and third pillar pension funds, the volume of which in total is over 1.3 bn euros.

Search site