Nordea licensed to manage pension funds
The Financial Supervision Authority licensed Nordea Pensions Estonia AS to manage both mandatory and voluntary pension funds.
Nordea Pensions Estonia AS belongs to the Nordea Bank AB group; its sole shareholder is Nordea Life Holding AB, a Swedish registered subsidiary of Nordea Bank.
The supervisory board members of Nordea Pensions Estonia AS are Carl Johan Sidenmark, Raimo Kullervo Voutilainen and Jukka Tapani Venäläinen, and the management board consists of Angelika Tagel, Timo Pentti Juhani Korpela, and Kadi Toompere. The fund manager of Nordea Pensions Estonia AS is Olli Heikki Enqvist.
According to the Investment Funds Act, the share capital of a management company shall be at least MEUR 3 if the management company manages mandatory pension funds. Pension fund management is subject to a license from the FSA. The FSA has earlier issued pension fund management licenses to the public limited companies Danske Capital, ERGO Varahalduse AS, Hansa Investeerimisfondid, LHV Varahaldus, and SEB Varahaldus.
The market in mandatory pension funds was divided as follows at the end of 2007: Hansa Investeerimisfondid 52%, SEB Varahaldus 28%, Danske Capital 13%, LHV Varahaldus 4%, and ERGO Varahaldus 3%. Hansa Investeerimisfondid holds more than two-thirds of the market in voluntary pension funds, namely 70%. SEB Varahaldus holds 25%, Danske Capital has 3% and LHV Varahaldus holds 2% of the market.
As of 30 June 2008, more than 566 000 people have subscribed to a mandatory pension fund. Units of voluntary pension funds are held by 44 700 persons (as of 31 December 2007). Mandatory pension funds totalled EEK 12.2 billion at the end of 2007, while investment funds belonging to Estonian private residents totalled EEK 3.5 billion. Investments per unit holder amounted to EEK 21 288 in mandatory pension funds and EEK 24 820 in voluntary pension funds.