Analytics, Banks, Financial Services, Funds, Latvia, Pensioners

International Internet Magazine. Baltic States news & analytics Sunday, 16.06.2019, 08:38

All second-pillar pension plans in Latvia show negative yield in 2018

BC, Riga, 04.01.2019.Print version
All second-pillar pension plans of Latvia's government-funded pension scheme showed negative yield in 2018, according to the data available at manapensija.lv writes LETA.

Except for the seven active pension plans created last year, the annual yield of 10 active pension plans ranged from -10.96%  to -2.65% last year, the annual yield of four balanced pension plans was in the range from -5.33% to -2.88%  and, expect for one conservative plan created last year, the yield of seven conservative pension plans ranged from -2.77% to -0.33%.


Indexo Izaugsme 47-57, managed by Indexo, showed the best performance among the active pension plans, closing last year with a yield of -2.65%.


Gauja, managed by PNB Asset Management, reported the poorest performance in 2018 as its yield was -10.96%.


Dinamika, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, remained the most popular active pension plan with 423,189 participants, up from 422,939 participants in late 2017.


Stabilitate, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, was the best performing plan among the seven conservative pension plans with an annual yield of -0.38%. 


The poorest result – 2.77% – was shown by CBL Universalais Ieguldijumu Plans, the conservative pension plan provided by CBL Asset Management.


Stabilitate, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, remained the most popular conservative pension plan. The number of its participants dropped from 119,369 in late 2017 to 117,587 at the end of 2018.


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.






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