2017-01-12
The returns across all pension funds operating in Lithuania were positive in 2016, while the average change in the 2nd pillar investment unit value over the previous year was 4.37 per cent, in the 3rd pillar investment unit value – 4.9 per cent. At the end of last year, twenty-one 2nd pillar pension funds and twelve 3rd pillar pension funds operated in Lithuania, with 1.25 million participants accumulating their pension in them.
‘Global financial markets were not quiet last year, especially because of the United Kingdom’s decision to leave the European Union and the US presidential elections. However, all 2nd and 3rd pillar pension funds earned positive returns last year. New contributions and the successful investing activities of the funds determined strong growth in their assets,’ says Audrius Šilgalis, Chief Specialist of the Financial Services and Market Analysis Division at the Bank of Lithuania.
In 2016, the investment units of the conservative investment pension funds group grew by an average 0.79 per cent in value, of the small equity share funds group – 2.48 per cent, of the medium equity share pension funds group – 4.66 per cent, and of the group of investment funds investing in equity – 9.20 per cent. The increase in the net assets of 2nd pillar pension funds totalled EUR 369.39 million, an increase of 17.4 per cent year on year.
The investing activities of 2nd pillar pension funds led to a EUR 79.00 million increase in the assets of participants (excluding the funds paid out to participants who have left the funds). In 2016, Sodra transferred to pension funds EUR 153.48 million, another EUR 66.63 million were transferred by participants themselves, while the amount of additional contributions financed from the state budget totalled EUR 70.29 million.
The investments units of 3rd pillar bond pension funds grew by an average 2.48 per cent, of mixed investment pension funds – 3.55 per cent, of pension funds investing in equity – 7.72 per cent in value. The net asset value of these funds rose by 29.4 per cent year on year – to EUR 79.50 million.
Detailed data on the performance of 2nd (75 KB download icon)and 3rd (67.5 KB download icon)pillar pension funds is published on the website of the Bank of Lithuania.