OREANDA-NEWS. September 04, 2009. SEB will start offering its new second pension pillar product, the Energetic Pension Fund, from 1 September. The proportion of equities in the new fund is greater than in any other second pension pillar fund currently offered in Estonia and is suitable for clients who have enough time left until their retirement and whose risk profile allows them to rely more on the rates of return on equity markets, reported the press-centre of SEB.

The amendment made to the Investment Funds Act allows second pension pillar funds to invest up to 75% of their assets in equity funds, equities and other instruments similar to equities. The previous maximum percentage of equity investments permitted by law was 50%.

“We’re the first company in Estonia to offer our clients the opportunity to invest more of their funded pension in equities than has been possible to date, and we’re set to launch SEB’s fourth second pension pillar fund – the Energetic Pension Fund,” said Sven Kunsing, a member of the Management Board of SEB Varahaldus.

“The time’s right to launch the new fund, with the markets bouncing back from the biggest financial crisis this century,” he explained. “But that’s not the most important thing, since SEB’s Optimal Pension Fund, which was launched last October when the financial crisis was at its peak, has justified itself by offering our clients an excellent risk-to-return ratio. It’s important for us to offer our clients the broadest possible spectrum of risk and return and more options than before.”

Up to 75% of the assets of the Energetic Pension Fund will be invested in equity funds, equities and other instruments similar to equities, and the remaining assets primarily in bonds and money market instruments.

The SEB Energetic Pension Fund is suitable for younger pension savers who have enough time left until their retirement and whose risk tolerance is high enough to ensure possible fluctuations in the value of investments associated with equity risks and who want to benefit from the long-term growth potential of equity markets.

Second pension pillar contributions to the fund will start from January 2010 if applications to join the fund are submitted before 1 November 2009. Contributions to the fund will start at the beginning of 2010 if applications are submitted after 1 November. Second pension pillar contracts can be entered into at any SEB branch or via the Internet bank U-Net.

Detailed information about the SEB Energetic Pension Fund, including the rules of the fund, the public offer prospectus and other important information, will be available from 1 September 2009 on the SEB Varahaldus website at www.seb.ee/fondid and at SEB branches. SEB advises you to read the fund rules and prospectus and to consult an investment adviser before you make any decisions.