Surprisingly, Estonian pension funds that operate second-pillar pension schemes have invested not only in conservative German and Finnish government bonds, but also, for instance, in Italian government bonds.
In fact, Italian government bonds are the third most popular government bonds held by Estonia’s largest pension funds.
Other questionable investments made by Estonian pension funds include Hungarian, Romanian, South African and Turkish government bonds.
A survey shows that Estonian pension funds have 33 million euros of French government bonds in market value as of end of October.
Second-largest in the portfolio among government bonds are German government bonds that are worth 22 million euros.
Italian government bonds make up 19 million euros in value, followed by Polish government bonds (18 million euros) and Lithuanian government bonds (16 million).