OREANDA-NEWS. January 13, 2015. Last year, the Nordea pension funds` rate of return was between 4.66% and 8.16% depending on the pension fund strategy, placing Nordea pension funds among the top three in every fund class.

Pension fund C achieved the best result on the market among conservative pension funds.  As a result of taking over ERGO pension funds and regular switches, the total volume of Nordea pension fund assets grew 114% over the year. At the beginning of 2015, Nordea pension funds have close to 60 thousand customers.

“Due to sharp fluctuations on capital markets and a strained geopolitical environment, the key words for investing Nordea pension funds` assets were avoiding crisis hotspots and staking on growth in economically more robust regions. For example, we sold investments in Russia already in March last year and investing in North-American stock markets paid off throughout the year,” explained the Chairman of the Board of Nordea Pensions Estonia AS, Angelika Tagel.

The interest environment on global markets has remained low for quite a long time already, which is why, in addition to low risk bond markets, Nordea pension funds have kept some assets in higher yield bond positions.

Most former ERGO customers have continued in Nordea pension funds. 6.7% of the customers transferred at the beginning of September have opted for a different fund as of January 01, 2015. Relatively small changes demonstrate that customers have noticed Nordea pension funds` excellent results over the years.

“We are extremely pleased that most former ERGO customers have accepted  Nordea`s approach. Existing Nordea pension fund customers also gained from the merger of the funds, because the fund management fee decreased and diversification of risks has also improved,” added Tagel.

More detailed Nordea Pensions Estonia AS economic results will be published at the end of January.

Nordea Pensions Estonia AS has been managing pension funds in Estonia since 2008 and belongs to the largest Nordic life and pension insurance group  Nordea Life and Pensions.

In autumn 2014, Nordea took over former ERGO pension funds and merged them with Nordea pension funds. When the fund manager changed, the value of customers` pension assets remained the same and the customers incurred no extra costs due to the transactions.