OREANDA-NEWS. September 04, 2009. Swedbank has launched a new 2nd pillar pension fund K4 on the market, which invests up to 75% of assets in equity and equity funds. This is a fund that implements a bolder investment strategy compared to the current funds, and it primarily suits young and knowledgeable investors who start saving for their pension, reported the press-centre of Swedbank.

According to Jelena Fedotova, acting Chairman of the Management Board of Swedbank's Pension Funds, the new Fund K4 gives those who save for pension a new investment opportunity. „Regular pension savings concern the majority of Estonian population, and in the current environment people have been waiting for more choices to channel their investments“, she said.

To ensure the best long-term result, the entire Swedbank's offer of pension funds is based on the life curve logic, according to which, when saving for pension, it is recommended to start with a fund that holds a bigger share of equities and then gradually, with the pension age nearing, move to a fund where bonds prevail. The offer of Swedbank's pension funds also includes Pension Fund K3 (50% share of equities), Pension Fund K2 (25% share of equities) and Pension Fund K1 (100% of bonds).

According to Fedotova, this is a good time to launch a pension fund with a higher equity share on the market since the effect of Fund K4 will be created through long-term investment over economic cycles. „Today, the price level at the equity markets is lower than the average price of the past years, and therefore many analysts think that this is a favourable time to make long-term equity investments“, said Fedotova.

Fund K4 primarily suits young, but knowledgeable investors starting saving for pension, who understand the market risks and have a sufficiently long time before they reach pension age. The Fund allows offering a bigger long-term growth of pension assets compared to other pension funds, but investors should be ready for possible short-term extensive fluctuations of the Fund's unit value.

Expanding the choice of pension funds is part of Swedbank's pension fund offer development. In May, a single competency centre was formed at the asset management company Swedbank Robur, which was founded in 1967; the company manages assets for approximately 70 billion euros and employs about 400 people; at the competency centre, day-to-day investment decisions in respect of the 2nd pillar pension funds are made by a team comprising investment experts from the Baltic states and Sweden. „The establishment of the competency centre made it possible to involve Robur's long-term expertise in the global equity markets in pension asset investments and ensured improved access to various investment instruments“, added Jelena Fedotova.
For three consecutive years, the international analyst company Lipper has awarded Swedbank Robur the title of the best management company in the Nordic region.

Those who would like to join the 2nd pillar and start saving for pension with the Fund K4 should submit an application for joining the pension fund through Swedbank's Internet bank or at a branch. Those who have already joined the 2nd pillar but would like to move their current pension assets to the Fund K4 can arrange for that at the nearest Swedbank branch. To start pension saving into the Fund K4 from the beginning of 2010, the application has to be submitted to the bank by 31 October 2009 at the latest.
 
Before making the decision, we recommend to read the terms and conditions and Prospectus of the Fund at a Swedbank branch or in the Internet bank.

Besides, an application for continuing payments into the 2nd pillar has to be submitted, and it can be submitted already now until 30 November at Swedbank branches and from 1 October to 30 November through the Swedbank's Internet bank or on the website at www.pensionikeskus.ee