Financial Services, Latvia, Pensioners

The annual yield of active pension plans where investments in stocks can reach 50%, ranged from 10.3% to 17.43%, the annual yield of active pension plans where the share of investments in stocks can be up to 75%, ranged from 13.51% to 25.61%. 

The yield of balanced pension plans was in the range from 9.95% to 11.92%, and the annual yield of conservative pension plans ranged from 2.56% to 9.1%. 

Indexo Izaugsme 47-57, managed by Indexo, showed the best performance among the active pension plans, reporting a yield of 17.43%, followed by ABLV Aktivais Ieguldijumu Plans, managed by ABLV Asset Management, with 16.98%, and SEB Eiropas Plans, managed by SEB Investment Management, with 16.31%.

Dinamika, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, showed the lowest annual yield (10.3%) among the active pension plans, followed by Gauja (13.42%), managed by PNB Asset Management.

Dinamika, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, remained the most popular active pension plan with 381,839 participants, down from 423,189 participants at the beginning of 2019. SEB Aktivais Plans, managed by SEB Wealth Management, was the second most active plan with 128,058 participants, and CBL Aktivais Ieguldijumu Plans, managed by CBL Asset Management came third with 120,635 participants.

Of the eight conservative pension plans, the best yield (9.19%) was shown by Daugava, a pension plan of PNB Asset Management, while SEB Latvijas Plans, a conservative plan provided by SEB Investment Management, was second with an annual yield of 2.56%. 

Stabilitate, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, remained the most popular conservative pension plan with 113,328 participants at the beginning of this year, down from 117,587 participants at the beginning of 2019.

Of the four balanced pension plans, the biggest yield was reported by Venta, managed by PNB Asset Management - 11.92%, while the lowest yield was reported for Luminor Sabalansetais Ieguldijumu Plans, managed by Luminor Asset Management - 9.95%.

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.