“3. at the pension level, contributions are actually paid by less than one in five workers. The average savings are below two thousand euros. The low interest of customers can be explained by the fact that so far the profit indicators have been deplorable. Index The aim is to eliminate the shortcomings of the 3rd pension level, to provoke competition in the market and to offer customers a more attractive solution that has never been seen before in Latvia, “says Valdis Siksnis, Index co – founder.
After Index According to estimates, the 3rd pension level has earned only about 2.1% per year over the last decade. This is extremely small, as the global developed country stock market has earned around 10.9% per annum during this period, while the conservative euro-denominated investment grade bond market has also earned 3.9% per annum. As a result, Latvian pension funds have earned only 76 million euros for their clients, while the potential profit could have been much higher.
“We estimate that Latvian investors could have earned up to 230 million euros more since 2010. The shortfall is explained by inefficient fund management, age-inappropriate investments, over-conservative investments and high commissions. Index enters the 3rd pension level with an offer that solves these problems. We will provide clients with efficient investments in index funds with atypically low costs and for the first time in Latvia use a robotic investment approach. The client only has to indicate the planned retirement age, and our system will take care of the distribution of investments according to the client’s needs. In turn, experts will have a unique opportunity to determine for themselves the proportion of the portfolio to invest in the stock and bond markets, ”says Index Executive Director Ilya Arefiev.
Since its foundation in 2017 Index maintains a stable position as the fastest growing pension manager in Latvia in terms of the number of clients. The company already has more than 50 thousand customers in total Index have invested about 325 million in pension plans. euro. Indexo LThe first to introduce the so-called index investment approach recommended by many experts, including Nobel Laureates in Economics.
Index is an investment management company licensed by the Financial and Capital Market Commission, which manages modern, innovative low-cost 2nd and 3rd tier pension plans. Index the subsidiary is a / s Indexo Open Pension Fund, which this year received a license from the Financial and Capital Market Commission for the operation of a private pension fund. You can find out more Homepage.
Index Among the initiators of the project are more than 30 successful and well-known Latvian entrepreneurs, including the former head of the Latvian branch of Nordea Valdis Siksnis, Svens Dinsdorfs (ELKO), Valdis Vancovičs (Tele2), Edgars Zālītis (G4S), surgeon Kaspars Feldmanis, sworn attorneys Filips Kļavaviņš and Raimonds Slaidins, and many other well-known Latvian and foreign business environment leaders.
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