Swedbank Estonia to close its Private Debt Fund

26.11.2009, 14:47

Swedbank Estonia said it will close its Private Debt Fund that invested in Estonian corporate bonds at the end of this year.

Swedbank's so-called PDF fund was in the centre of controversy in September when the value of some bonds held by PDF plummeted, eroding the value of investments made in PDF by Swedbank's pension funds.

PDF adjusted the value of some bonds that it held downward by more than a fifth.

Agnes Makk, head of Swedbank's investment funds, confirmed that the bank was going to liquidate the fund at the end of the year.

After the scandal over the pension fund management, Swedbank decided to compensate the loss caused to shareholders.