2012-03-27
Successful beginning of the year allowed domestic pension funds to recover the value of assets that was lost earlier
According to the data of the Bank of Lithuania, in February 2012 the positive return on investment was generated by all 2nd pillar and 3rd pillar pension funds of the country. Last month, the unit values of thirty 2nd pillar pension funds operating in Lithuania went up by 1.98 per cent on average, and by 5 per cent since the beginning of the year, whereas the assets managed by them increased to LTL 4.33 billion. The unit values of nine 3rd pillar pension funds increased by 2.75 per cent in February and by 7.29 per cent since the beginning of the year, whereas the assets managed by them amounted to LTL 98.63 million.
Optimistic expectations, which became prevalent in global markets at the end of last year, did not subside. After reaching the solution on the debt refinancing of Greece, in February, same as in January, the majority of the main European and Baltic indices went up. OMX Baltic Benchmark GI, which reflects the Baltic stock markets rose in February by 5.38 per cent, the stock index of the western European states DJ Stoxx 600 recorded the return of 3.90 per cent, the index of the central European countries CETOP 20 grew by 3.53 per cent, whereas emerging economies (MSCI EM index) increased by5.89 per cent.
“The harvest of investment activity of the pension funds in the first two months of this year enabled a strong recovery of the asset value of the future pensioners, which decreased in 2011. Last year, the asset value of 2nd pillar pension funds, where more than 1 million people accumulate a part of their pensions, declined by around LTL 133 million due to the negative return on investment. This year, owing to successful investment activity of these funds, the assets increased already by LTL 200 million”, said Mr. Vilius Šapoka, Director of the Financial Services and Markets Department of the Supervision Service of the Bank of Lithuania.
The largest positive change in February, same as in January, was registered by the most risky pension funds – those investing in stocks. The average return of these 2nd pillar pension funds made up 2.91 per cent last month and 7.99 per cent since the beginning of the year. Only slightly behind in terms of growth were medium equity share 2nd pillar pension funds: their unit value went up by 2.39 per cent in February and 5.98 per cent since the beginning of the year. The most conservative (bond) 2nd pillar pension funds recorded the average unit value growth of 0.85 per cent in February and 1.9 per cent since the beginning of the year.
The average unit value of 3rd pillar pension funds stood out in terms of growth: it went up by 3.63 per cent in February, whereas in the first two months of this year it grew on average by 9.8 per cent. The average return of mixed investment 3rd pillar pension funds made up 1.4 per cent last month and 3.53 per cent since the beginning of the year. The unit value of the most conservative 3rd pillar pension fund increased by 1.99 per cent over the month and by 4.02 per cent since the beginning of the year.
According to the data of the Bank of Lithuania, in the last 12 months the positive return was recorded by twenty one 2nd pillar pension funds, the negative return was registered by eight 2nd pillar pension funds (one pension fund has not yet published its performance results), whereas two 3rd pillar pension funds registered the positive return and seven recorded the negative return.
The return of 2nd pillar pension funds that operated profitably over 12 months fluctuated between 0.09 per cent to 4.82 per cent. The unit value of the funds that registered a negative change declined by 0.02 – 4.65 per cent.
The unit value of two 3rd pillar pension funds that recorded the positive return over the last 12 months increased by 1.21 per cent and 4.44 per cent respectively. The unit values of the funds that registered negative changes declined over the same period by 0.19 – 14.32 per cent.