2012-11-22
The assets accumulated in people’s pension funds have soared this year by over half a billion litas
According to data from he Bank of Lithuania, due to good investment results, assets managed by thirty Pillar II pension funds operating in the country increased by LTL 595.81 million (14.60 %) since the beginning of the year and reached LTL 4.677 billion at the end of the third quarter. Assets managed by nine Pillar III pension funds rose by LTL 8.88 million (9.45 %) and at the end of the fourth quarter reached LTL 102.79 million.
“The drop observed in the global financial markets in the second quarter of this year did not have a significant impact on the results of pension funds, and successful first and third quarters from the start of the year resulted in an increase of pension fund values and assets managed by them. The total number of participants also grew,” says Vilius Šapoka, Director of the Financial Services and Markets Supervision Department of the Supervision Service of the Bank of Lithuania.
In the first three quarters of this year the number of participants accumulating their pensions in Pillar II pension funds increased by 1.41 per cent to 1, 062, 254, and in Pillar III pension funds they rose by 6.12 per cent to 28, 047, respectively.
According to data from the Bank of Lithuania, at the end of the third quarter, positive return was generated by all thirty Pillar II and nine Pillar III pension funds operating in the market. The return of Pillar II pension funds fluctuated this year from 2.2 per cent to 15 per cent and was equal on average to 9.3 per cent, while the return of Pillar III pension funds—from 4.9 per cent to 13. The average return amounted to 10.2 per cent.
The highest investment return was attained by progressive pension funds: the unit value of Pillar II pension funds increased on average by 12 per cent; of moderate pension funds—10.3 per cent; of growth pension funds—8.7 per cent; and of conservative pension funds—5.1 per cent.
At the end of the third quarter, the major share (more than a half) of the investments of Pillar II and Pillar III pension funds was composed of investments into collective investment undertakings (CIU). Moreover, Pillar II pension funds had invested into Government Securities more than one third of their managed assets, while Pillar III pension funds—about one fourth.
The most popular investment directions of Lithuania’s pension funds were Lithuania and Luxembourg—respectively 60 per cent and 65 per cent of the assets in Pillar II and Pillar III pension funds were invested in these countries. By investment size these countries are followed by Ireland, Germany and France.