Financial Services, Funds, Good for Business, Latvia, Pensioners

Indexo Izaugsme 47-57, managed by Indexo, showed the best performance among the active pension plans, reporting a yield of 9.15%, followed by INVL Extra 47+, managed by INVL Asset Management with 6.93%, and SEB Aktivais Plans, managed by SEB Wealth Management, with 5.6%.

Gauja, managed by PNB Asset Management, reported the poorest performance as its yield was 0.18%. Further down the list were Dinamika, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, with 2.97%, and ABLV Aktivais Ieguldijumu Plans, managed by ABLV Asset Management, with 3.6%.

Dinamika, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, remained the most popular active pension plan with 396,241 participants, down from 415,378 participants in late 2018. SEB Aktivais Plans, managed by SEB Wealth Management, was the second most active plan with 130,629 participants, and CBL Aktivais Ieguldijumu Plans, managed by CBL Asset Management came third with 122,207 participants.

CBL Universalais Ieguldijumu Plans, managed by CBL Asset Management, was the best performing plan among the eight conservative pension plans with an annual yield of 6.87%. The poorest result – 2.98% – was shown by SEB Latvijas Plans, the conservative pension plan provided by SEB Wealth Management.

Stabilitate, managed by Swedbank Ieguldijumu Parvaldes Sabiedriba, remained the most popular conservative pension plan. The number of its participants dropped from 118,182 in late 2018 to 114,215 at the end of September 2019.

Among the four balanced plans, the biggest yield was reported by INVL Komforts 53+, managed by INVL Asset management - 6.46%, while the lowest yield was reported for Venta, managed by PNB Asset management - 2.08%.

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.