SEB starts offering a passive pension fund

Starting from today, 12 December, it is possible via SEB Internet Bank and offices, to direct one’s funded pension payments to the new, passive SEB Energetic Pension Fund Index.

“We want to offer a client who wants to secure their future, a wider spectrum of second pillar pension funds, from which they can select the solution best suited to their savings goals. This is why in addition to our four actively managed pension funds we are also offering the passive SEB Energetic Pension Fund Index,” commented Sven Kunsing, Chairman of the Management Board of SEB Varahaldus.

In making the investments, SEB’s new passive pension fund follows the international market indexes, without any active management of the assets in the passive fund and without making any adjustments in the fund’s portfolio on the basis of the situation on the financial markets. The annual management fee for the SEB Energetic Pension Fund Index is 0.49%.

According to Sven Kunsing, Chairman of the Management Board of SEB Varahaldus, the new fund has an average risk level, investing up to 75% into global shares and the rest into European bonds. “In the selection of the fund's asset classes, we prefer simplicity and transparency. The share component enables us to benefit from the growth of the world’s enterprises and the bond component evens out the fluctuations in extraordinary situations,” explained Kunsing.

“Among other aspects, a passive pension fund also means greater openness towards market risks, which is why the SEB Energetic Pension Fund Index is primarily suited to a client who has prior experience in the field of investing and is able to assess the risks involved. The new fund is also well-suited for young people — as the saving period is long, they still have time to move between actively and passively managed pension funds, as necessary. There have been periods in history where the investment decisions made by fund managers have been more justified, but there are moments in recent history when passive funds have been more successful. This is why the main rule of investment must be kept in mind — the past rate of return is not a guarantee of the future rate of return, and a fund with a suitable risk level needs to be chosen,” added Kunsing.

More information about the SEB Energetic Pension Fund Index is available on SEB’s website at www.seb.ee/IIsammas.

For more information:

Maarja Gavronski
Project Manager for Communication
Marketing and Communications Division
SEB Pank

Phone +372 665 5270
Mobile +372 5656 5785
Address Tornimäe 2, 15010 Tallinn
E-mail maarja.gavronski@seb.ee 
www.seb.ee

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