EU – Baltic States, Financial Services, Funds, Investments, Lithuania, Pensioners

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 13:31

Lithuanian pension funds unlikely to revise their strategies due to Brexit

BC, Vilnius, 28.06.2016.Print version
The global capital market turmoil caused by Britain's decision to leave the European Union is unlikely to prompt Lithuanian pension funds to revise their strategies in the near term, the president of the Lithuanian Investment and Pension Funds' Association said on June 27th, cites LETA/BNS.

According to Sarunas Ruzgys, it is very difficult to predict pension funds' long-term reaction due to the uncertainly about how the UK's relations with the EU will go after the "Leave" vote.

 

"Funds have invested in global stock and bond markets and the short-term impact on their paper result depends on the short-term impact on these asset classes. Pension funds do not pay much attention to such speculative moves. This is a long-term investment and no fund is probably rushing to make any moves here," Ruzgys told BNS.

 

"It seems that funds will stick to their long-term strategy, as promised and planned," he added.

 

According to the association's president, the markets' initial reaction was emotion-driven, but now everything will depend on the UK's decisions on its next steps regarding the EU.

 

Figures from the central Bank of Lithuania show that the UK is not among the most popular investment choices for Lithuanian investment funds and the pound sterling is not the most popular investment currency. Pound-denominated investments, equivalent to around 5.07 million euros, accounted for 2.24% of Lithuania-registered investment funds' total assets in late 2015.

 






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