The volume of assets managed by asset management companies in Estonia increased by a total of €100 million in the first quarter of 2017, reaching€5.6 billion by the end March.
The Estonian asset managers’ own funds increased by €200 million to €4.1 billion. This was due to the development of their largest position, the domestic pension funds, which grew by €200 million to €3.3 billion, the Financial Supervision Authority reported.
In addition to the management of their own assets, the provision of investment management services to funds from other countries is an important line of business for the Estonian financial companies in this field. The volume of assets managed under an outsourcing arrangement decreased by €100 million during the first quarter to €1.1 billion.
The net profit of fund managers decreased by €600,000 quarter on quarter to €4.1 million in the first quarter of the year. Return on equity declined by 2 percent to 14 percent.
As an important development in the sector, the Financial Supervision Authority pointed out the addition in the final quarter of 2016 of passive pension funds with low management fees.
The Financial Supervision Authority publishes quarterly overviews of the situation and developments in the areas of the financial sector that are under national supervision.
The overviews are based on reports provided by the affected companies, and are published for banks, insurance companies, fund management companies, investment firms, and payment service providers as data comes in.
Editor: Dario Cavegn