Lithuania: Pension funds preserved value of accumulated assets even in environment of negative emotions in financial markets
OREANDA-NEWS. October 15, 2015. Most of the 2nd pillar pension funds operating in Lithuania recorded positive returns over the three quarters of 2015, while the average change in an investment unit was 0.11 per cent. Since the beginning of the year the value of the net assets of 2nd pillar pension funds has increased by EUR 134.89 million and amounted to EUR 2.001 billion.
“The sharp decline in stock prices in China’s market and turmoil in the European and global financial markets resulted in the value of a major part of of the 2nd pillar pension funds units to decrease in the third quarter. However, due to a particularly successful beginning of the year, the return on 2nd pillar pension funds over the nine months of this year is positive,” says Audrius ?ilgalis, Senior Specialist of the Financial Services and Markets Analysis Division of the Supervision Service at the Bank of Lithuania.
Over the nine months of 2015, sixteen out of twenty-four 2nd pillar pension funds operating in Lithuania earned positive return. The value of the investment units of the pension fund group investing in bonds (conservative investment) increased the most — by 0.90 per cent. The growth in the small investment unit value of pension funds was lower — 0.77 per cent, while the values of the units of other fund groups decreased — by 0.27 per cent, and for equity pension funds — 0.39 per cent.
As of 30 September 2015, 1.20 million participants accumulated their pensions in 2nd pillar pension funds.
The value of the 3rd pillar pension fund investment units over the period under review decreased on average by 0.58 per cent, but their assets managed, as a result of increasing contributions to funds, grew by EUR 4.65 million — to EUR 52.16 million. At the end of the third quarter, twelve 3rd pillar pension funds, with 45.5 thousand participants accumulating their additional pension in them, operated in Lithuania. Over the nine months of this year, the return on five 3rd pillar pension funds was positive, while that of seven — negative.