Financial Services, Funds, Investments, Latvia, Pensioners

He also noted that Indexo Izaugsme attracted nearly 2,000 participants during the first month after its launch.

“The large average size of the participants’ savings shows that economically active, well-informed members of society were the first to choose our solution,” said Indexo board chairman Valdis Siksnis.

As reported, the Financial and Capital Market Commission (FCMC), licensed Indexo to provide investment management services, specializing in management of the second-pillar pension assets on May 16, 2017.

Founded in January 2017, Indexo has a share capital of EUR 2.265 million. Its shareholders are DVH (40%), VSCAP (30%) and Druvis Murmanis (30%). The company's CEO is Valdis Siksnis, the former head of the Latvian branch of Nordea Bank and the owner of VSCAP.

Now there are nine registered second-pillar pension asset management companies in Latvia.

Latvia has a three-pillar pension system. The first-pillar pensions are paid to the existing pensioners from the social contributions made to the state budget. The second or government-funded pension level implies that part of the social contributions by employees is invested in the finance sector, ensuring them bigger pensions in the future. The third pillar is operated by private pension funds based on voluntary contributions.