Banks, Estonia, Financial Services, Funds, Investments, Pensioners

Market leader Swedbank's all three obligatory pension funds have fallen to the back row in regard to yields too and cause the biggest headaches for shareholders.

Until the end of October, all customers of the second pillar pension funds can switch funds and new customers can join the funds they like. As of now, SEB has gained the most customers while proportionately, smaller pension funds such as those managed by LHV, ERGO and Nordea – have gained the most.

"Since we have the largest share of the second pillar pension funds market, it can be somewhat expected that movement from one fund to another takes place more frequently. Certainly new players who have entered the market over the past year have their part in it,” comments Swedbank’s pension funds manager Yelena Fedotova why clients have slipped to competitors.

Last week the Financial Inspection called people to review the yields and investments of the pension funds they had chosen. “This is the right time to review the progress of your second pillar pension fund and make a decision whether to continue saving money in the same fund or chose another fund for this” said the inspection.