The rates of return of all SEB pension funds were positive in 2016 and beat inflation

The rates of return of the pension funds managed by SEB Varahaldus were positive in 2016. The rate of return of the most popular SEB Progressive and SEB Energetic pension funds, used for pension savings by more than 122,000 people in Estonia, has been positive for the past five years in a row.

“The results of SEB pension funds were mainly influenced by moderate, not too aggressive investments in liquid stock markets. A number of events took place on the markets, which could have potentially caused some  turbulence, such as the Brexit vote in summer and the US presidential election in autumn, although their impact was shorter than expected. During the second half of the year the state of the global economy improved, overshadowing the political whirlwinds. It is possible that investors also grew tired of all the talk about the risks surrounding us,” explained Endriko Võrklaev, Fund Manager at SEB Varahaldus.

The objective of the pension funds is to achieve a rate of return that surpasses inflation and to offer supplementary income for retirement age in addition to the state pension. In 2016, all 2nd and 3rd pillar SEB pension funds outpaced the rate of inflation in Estonia. SEB’s most popular SEB Progressive and SEB Energetic pension fund have also outpaced the local rate of inflation since their inception.

“2017 is proving to be an encouraging year from the aspect of the global economy, possibly fostering riskier investments. Forward-looking economic indicators continue to be positive, and, unlike previous years, improvement can be seen in several of the bigger economies. The rise in interest rates has not startled investors too much, and the results of enterprises may also start to improve gradually. Acknowledging our responsibility before the tens of thousands of people who are saving for their retirement, we are keeping our heads cool and our risks balanced,” added Võrklaev.

Detailed figures of the rate of return by SEB pension funds in 2016. Administrative fees have already been discounted from the results.

Second pillar
SEB Conservative Pension Fund +1.05%
SEB Optimal Pension Fund +1.64%
SEB Progressive Pension Fund +3.26%
SEB Energetic Pension Fund +4.18%

Third pillar
SEB Balanced Pension Fund +1.61%
SEB Active Pension Fund +5.20%

Source: SEB
A return on earlier periods does not guarantee a return on future periods. Data on the funds’ rate of return by each period is available at www.seb.ee/fondikursid.

More information:

Julia Piilmann
Communications Manager
Marketing and Communications Division
SEB Pank

phone +372 665 5340
aaddress Tornimäe 2, 15010 Tallinn
e-mail julia.piilmann@seb.ee

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This information should in no case be construed as an investment consultation, investment recommendation, or any other investment service. Nor should any information or views presented herein be treated as an offer or recommendation to enter into any contract whatsoever. An investment in a fund is always subject to various risks that, when they occur, may have an unfavourable effect on the value of the investment or its realisation, or on the rights of investors or on other similar factors.