“Invalda INVL” offers in the Latvian market new passive management 2nd pillar pension plan INVL INDEX DIRECT

Offering currently the lowest commission nationwide for the management of the 2nd pillar pension index plan, as well as providing every new participant with the opportunity to become a shareholder, on Wednesday, 16 August, “Invalda INVL”, the largest independent pension management group in the Baltic States presented new passive management 2nd pillar pension plan INVL INDEX DIRECT.

“It is important for us to build a long-term relationship with our clients; therefore we will assign one share to each new participant of the new pension plan INVL INDEX DIRECT. Our long standing experience in management of pension funds provides us with opportunity to offer the lowest commission currently available in the market for the passive management plan,” stresses Mr. Andrejs Martinovs, head of INVL INDEX DIRECT.

Commission of INVL INDEX DIRECT will consist of the fixed annual share of 0.5%, while the variable share depending on the performance of the plan will not be deducted at all.

Within the framework of this pension plan, investments will be made in funds and exchange-traded funds (ETF) linked to indexes. 49% of the plan will be invested in funds investing in shares, another 49% – in funds investing in bonds, while the remaining 2% will be invested in money markets.

“Upon diversification of risks, we have created a balanced investment portfolio. Approximately one quarter of shares will be in the USA, 10% – in Europe, while much lower share of the portfolio will be in countries like Japan, Australia, Canada and the development countries. We have split investments in bonds evenly between the developed and the development markets, since thus we adapt the new product to suit the conditions of Latvia,” explains Andrejs Martinovs, head of the pension plan.

According to the modelling of historical profitability of this portfolio since July 2014, today it would reach 5.04% annually.

“INVL INDEX DIRECT pension plan is intended for the residents of Latvia with sufficiently long time left before the pension age, i.e., at least fifteen to twenty years. We consider that it is important to select a pension manager with at least two pension plans in store, one of them – conservative. Investors though must be provided with opportunity of operative change of the investment strategy in cases of financial crisis or increased market fluctuations”, points out Andrejs Martinovs.

Additional information on the new pension plan is available on the home page of INVL INDEX DIRECT: www.index.lv.

About “Invalda INVL”

“Invalda INVL grupa” was founded in 1991. Currently, the group companies manage more than 20 investments, real estate and pension funds (2nd and 3rd pillar), as well as private financial instrument portfolios. Total portfolio value exceeds 520 million euro. Asset manager serves more than 180’000 clients in Lithuania and Latvia, as well as provides services for pension provision savers in Sweden, Germany and Norway. “Invalda INVL” shares are listed at “Nasdaq” Baltic exchange since 1995.