Who manages my pension capital?
2nd pension pillar is managed by the investment management companies, which are registered in the state funded pension scheme managers register, which is maintained and updated by the Financial and Capital Market Commission.
To become a funded pension scheme manager, an investment management company has to receive a license from the Financial and Capital Market Commission. The manager is responsible for managing the funds entrusted to him in order to ensure your 2nd pillar pension capital preservation and growth. The manager keeps track of financial market trends and makes decisions about where to invest in the most beneficial way, but managers can invest the entrusted funds only in accordance with the investment regulations and your chosen investment plan prospectus. One of the main principles to be observed by the fund manager and that is defined in the investment rules, is the investment diversification. This means that in order to reduce the risk, your funds are invested in various securities, so that fluctuations in individual securities have no negative impact on your portfolio as a whole in the long term.
Main functions of a fund manager:
- To make decisions on investment of funds (according to the investment regulations of the investment plan prospectus) and money transfers to the SSIA;
- to issue instructions to the custodian bank about the invested funds;
- to determine the value of the managed funds on a daily basis;
- to determine the value of one unit of the funds on a daily basis and to report it to the SSIA;
- to provide the SSIA with information on the execution of the SSIA`s orders on transfer of management of funds and withdrawal of funds;
- to draw up annual and quarterly reports on the management of funds.
3rd pension pillar is managed by the investment management companies. They are licensed finance companies that manage private persons` funds paid for their benefit, in order to ensure money savings for these persons during old age.
