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Thursday, 28.03.2024, 09:50
Investing pension fund assets in Estonian economy becomes simpler
"The main purpose of the draft law is to enliven the Estonian economy, bringing more of our pension fund investments here and providing pension savers the chance to benefit from economic growth more," said Finance Minister Sven Sester.
The amendment allows pension funds to invest up to 30% of their assets in shares and bonds not listed at the stock exchange, instead of the current 10%. Also, a pension fund can in the future acquire a controlling stake in a company, and invest more assets in various infrastructure projects (energy companies, highways).
The amendments allow second pillar pension funds to invest in bigger real estate projects. In addition, up to 5% of the assets of a pension fund can be invested in gold and other precious metals, which is currently not allowed.
Pension funds have invested 5.4% of their assets in Estonian companies so far (not considering deposits).