For half of them, the profitability of tier 2 pension plans during the year is negative

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Among them, the return on active investment plans, which can account for up to 50% of shares, was -17.33% to 3.17% at the end of September 2020, while the return on active investment plans, which can account for up to 75%, ranged from -1.56% to 5.63%. At the same time, the return on balanced investment plans during the year ranged from -10.15% to 0.46%, while the return on conservative investment plans ranged from -4.88% to 1.54%.

Of the nine active investment plans, the share of which may be up to 50%, six plans had a negative return, including the largest negative return during the year for the Gauja investment plan managed by the investment management company PNB Asset Management, which had a return of -17, 33%. The pension plans “SEB Eiropas plāns” and “SEB aktivais plāns” managed by SEB Investment Management follow, with returns of -1.87% and -0.78%, respectively.

The highest return was for the “ABLV Active Investment Plan” managed by ABLV Asset Management, which had a return of 3.17%. This is followed by the investment plan “CBL Active Investment Plan” managed by CBL Asset Management, which had a return of 1.67%, and the investment plan “Indexo Growth 47-57” managed by the investment management company “Indexo”, which had a return of 1.42%.

Still the most popular of the active investment plans, whose share of investments in shares can be up to 50%, was the investment plan “Dynamics” of Swedbank Investment Management Company, which had 347,077 participants (381,839 participants at the beginning of the year). At the end of September, the return on this investment plan was -0.28% during the year. The second most popular was the SEB Active Plan managed by SEB Investment Management, which had 119,807 members (128,058 members), while the third most popular investment plan, with 115,131 members (120,635 members), was CBL Asset Management. managed investment plan “CBL active investment plan”.

At the same time, out of ten active investment plans, the share of which in investments in shares can be up to 75%, only one plan had a negative return – the pension plan “SEB Dynamic Plan” managed by SEB Investment Management, ie -1.56%.

On the other hand, the highest return from active investment plans, the share of which in investments in shares can be up to 75%, was for the investment plan “CBL Sustainable Opportunities Investment Plan” managed by CBL Asset Management, ie 5.63%. This is followed by the investment plan managed by CBL Asset Management, the CBL life cycle plan Millennials, which had a return of 5.32%, and the pension plan managed by SEB Investment Management, the SEB index plan, which returned 2.21%.

At the end of September, the largest number of participants from active investment plans, whose share in investments in shares can be up to 75%, was Swedbank Investment Management Company’s investment plan “1990+” – 47,973 participants (28,675 participants at the beginning of the year), followed by Indexo pension plan “Indexo capacity 16-50” – 30,402 participants (21,983 participants) and the pension plan “SEB Dynamic Plan” managed by SEB Investment Management – 26,017 participants (21,883 participants).

Of the eight conservative investment plans, five had a negative return, including the largest negative return during the year for the Daugava investment plan managed by PNB Asset Management, which had a return of -4.88%. The highest return during the year was for the investment plan managed by CBL Asset Management, the CBL Universal Investment Plan, ie 1.54%.

The investment plan “Stability” managed by Swedbank Investment Management Company is still the most popular conservative investment plan – it was joined by 108,188 participants at the end of September (113,328 participants at the beginning of the year).

Among the four balanced investment plans, there were three negative returns, including the highest negative return during the year for the investment plan Venta managed by PNB Asset Management, which had a return of -10.15%, while only the investment management company INVL Asset had a positive return. Management “investment plan” INVL comfort 53+ “, ie 0.46%.

A three-tier pension system has been established in Latvia. First pillar pensions are paid to current retirees from social contributions collected in the budget. The second or funded pension level envisages that a part of employees’ social contributions is invested in the financial sector. In the third level, there are private pension funds, to which funds can be contributed voluntarily.

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