Pension fund performance: record growth but no recovery after pandemic strike

Since the pension reform, when the life cycle investment principle was introduced, the total weighted increase in the unit value of second-tier pension funds has reached 17.43%, announced the Bank of Lithuania (LB) .

“Positive changes continue to be recorded in the values ​​of pension funds in the third quarter. Over the past almost two years, the change in the unit value of pension funds has fluctuated like a well-stocked change, but more important is long-term accumulation and long-term returns. There will always be short-term fluctuations, both positive and negative. However, so far it can be seen that accumulation according to the life cycle principle is beneficial to pension fund participants, ”said Mindaugas Šalčius, Director of the Department of Financial Services and Market Supervision of the Bank of Lithuania. .

In the third quarter, the total weighted unit values ​​of the five youngest pension fund age groups grew the fastest, by more than 4% each. The unit value of pension funds in the 1961-1967 age group grew by 3.1%, and in the 1954-1960 age group and asset preservation pension funds by 1.97 and a 1.7%, respectively.

Since the beginning of the year, the unit value of pension funds in the 1996-2002 age group has decreased by 3.08%, in the 1989-1995 age group by 2.85%, in the age from 1982-1988 by 2.66% in the 1975-1981 age group. age groups: 2.65%, age groups 1968-1974: 2.56%, age groups 1961-1967: 1.02%.

The unit value of pension funds in the 1954-1960 age group has increased by 0.05 percent since the beginning of the year, while the value of pension asset preservation pension funds has increased by 0.45 percent.

Second-tier pension fund assets grew 6.3 percent in the third quarter. and amounted to 4,090 million at the end of September. The number of participants increased by 2%. up to 1,373 million.

The value of third-tier pension fund units has fallen an average of 1.3 percent this year.

The value of units of voluntary third-pillar pension funds operating in Lithuania decreased by 1.29% during the first nine months of this year, but in the third quarter it was fixed at 2.64%. increase.

According to the Bank of Lithuania, the average annual return of level three pension funds for the last five years has reached 4.52% and for the last decade 4.61%.

The unit value of tier three bond pension funds increased 0.46 percent this year, while that of mixed-investment pension funds decreased 0.36 percent, while that of pension funds Risk capital decreased 3.13 percent.

At the end of September, the value of accumulated assets in voluntary accumulation pension funds amounted to 148.69 million LTL. It increased by 6.2 percent in the third quarter.

Luminor Investment Management funds accumulated LTL 62.46 million. EUR (41% of total assets), INVL Asset Management funds: € 47 million. EUR (32%), in the SEB Investicijų Valdymas funds – EUR 37.92 million. 1.31 million euros (26%) in Swedbank Investment Management funds, which have only been operating for 10 months. EUR (1%).

At the end of September, 74.4 thousand people accumulated supplementary pensions in the third pillar pension funds. participants – 1.1 percent. more than at the end of June.

In terms of the number of participants, Luminor Investment Management also led (39.1 thousand, 53% of all participants), significantly surpassing INVL Asset Management (21.4 thousand, 29%) and SEB Investment Management (12.8 thousand , 17 percent). Swedbank Investment Management attracted 1.1 thousand, or 1 percent. of all participants.

Detailed results here.