Financial Services, Funds, Investments, Latvia, Pensioners

The largest increase was seen in Citadele Balanced plan, with assets increasing by nearly EUR 2.5 million in 2013, and plan participants earning EUR 573,000.

“Balanced pension plans typically have lower risk and more predictable profits,” says CEO of the Citadele Open Pension Fund, Jolanta Jērāne “Since January 1, 2012, only 20% of the assets in the Citadele Balanced plan have been invested in high-risk financial instruments, while the remaining 80% have been invested in fixed-income financial instruments. It is easier for participants in this plant to forecast profitability, because the earning of profits and the related uncertainties and risks are in balance with the preservation of the pension capital and the security of the investments.”

The Citadele Active, Citadele Active USD and Citadele Active EUR plans also increased last year by nearly EUR 2 million, with profits of EUR 383,800 for participants in the plans.

“Last year was also successful for participants in active pension plans, where we saw substantial capital growth,” says Jolanta Jērāne. “Active pension plans were most popular among 3^rd level pension plan participants in 2013.”

According to www.manapensija.lv, as of January 31, 2014, the Citadele Balanced plan that is managed by Citadele Asset Management has had a profit level of 5.77% since it was launched, while the Citadele Active 3^rd level pension plan has had a profit level of 5.54%. The Citadele Bank is the holding bank for all of the pension plans, and these are the highest profit rates among all 3^rd level pension plans in Latvia since their launch.[1] Citadele reminds its clients that the profitability of pension plans can change, and the current level of profitability does not guarantee similar profitability in future.