The Estonian Financial Supervision Authority on Monday issued a mandatory pension fund manager license to Tuleva Fondid AS.
The regulating authority also endorsed the terms and conditions of two pension funds managed by Tuleva Fondid, whose board members are Tõnu Pekk and Priit Lepasepp.
Tuleva Fondid AS filed an application with the Estonian Financial Supervision Authority for a mandatory pension fund manager license upon its establishment in September 2016.
It was first reported in April 2016 that a group of Estonian investors was set to establish a new pension fund, Tuleva, which would operate as an index fund and therefore allow for management fees to be kept low. Tuleva said at the time that it planned to invest pension collectors' money in global stocks and bonds from all over Europe in proportion to their market weight.
Tuleva announced on Tuesday that it would charge the the two funds — the Tuleva Global Equity Pension Fund and the Tuleva Global Bond Pension Fund — a management fee of 0.34 percent per year and that the funds' total costs would amount to no more than 0.5 percent per year.
In comparison, the average management fee of other Estonian pension funds is in excess of one percent and total costs are significantly higher still, Tuleva said.
Editor: Aili Vahtla