2016-09-20
The return of more than half of the 2nd pillar pension funds (PFs) operating in Lithuania was positive in the first part of 2016; however, on average, the total PF unit value reduced by 0.1 per cent. The 3rd pillar PF market saw similar trends — investment units decreased by an average 0.02 per cent in value, yet the net assets managed by these funds grew in value by EUR 3.6 million (to EUR 66.11 million).
‘Even though the slight moderation in unit values of 2nd pillar PFs was underpinned by global financial market fluctuations in the first half of 2016, having assessed the funds transferred by PFs and the amounts paid to the participants that left the system, it might be concluded that over the half year PFs managed to keep participant accumulated funds,’ said Audrius Šilgalis, Chief Specialist at the Financial Services and Markets Analysis Division of the Supervision Service of the Bank of Lithuania.
Since the beginning of the year, positive shifts were seen in the value of the net assets of 2nd pillar PFs — it rose by EUR 128.31 million. Over the first half-year, Sodra transferred to PFs EUR 75.44 million, the participants who chose to pay additionally — EUR 28.98 million, while the state additionally transferred to them EUR 31.55 million. Given that in the first half of 2016 PF participants that terminated their participation in the system were paid EUR 7.83 million, it might be concluded that due to investing activities fund assets boosted by EUR 0.35 million.
In January–June this year, collective investment undertakings registered in Lithuania saw their assets rise by EUR 15.02 million, while the value of units distributed was only EUR 6.90 million higher compared to that of units redeemed. On the back of successful investing activities, assets managed by the PFs expanded by EUR 8.12 million over the half-year.
The Review of Lithuania’s 2nd and 3rd Pillar Pension Funds and of the Market of Collective Investment Undertaking is available on the Bank of Lithuania website.