INVL Logo

Lithuanian Investment Index

The Lithuanian Investment Index is developed by INVL Asset Management, one of the leading asset management firms in Lithuania. It shows how return on investment in Lithuania’s four main asset classes has evolved since 1996.

Lithuanian Investment Index (1996-2021)

 

The index is calculated on the basis of investment returns for short-term debt securities and money market instruments (deposits), long-term bonds, shares and rental housing (as of 2016 calculated net of expenses), each of which is given equal weight. The index shows how the value of these investments has changed each year.

 

Returns on the Lithuanian Investment Index and its component asset classes are presented through the end of 2021: from the inception of the index in 1996, over 10 years (2012-2021), and in 2021.

 

According to the index, the average annual return on investment in Lithuania during the period of 1996-2021 was 9.6%, while in 2012-2021 it was 6.2%

In 2021, the Lithuanian Investment Index had a 11% gain, led by rental housing, which earned a return of 26.4%, followed by shares in the country with an  18.3% gain.

Inflation in 2021 was 4.6% – a rate the country’s long-term bonds, which earned -0.5%, and deposits, which had a 0% return, failed to surpass.

Long-term return on the Lithuanian Investment Index’s asset classes

The return on rental housing in Lithuania in 2021 grew an impressive. The value of which rose 22.4%, or 26.4% if rental income is included. Considering the last 10 years, the average annual growth in the value of Lithuanian rental housing was 9.7%, while in the period of 1996-2021 the average annual return on rental housing was 14.1%, making it the country’s most profitable asset class.

Lithuania’s stock market grew an impressive 18.3% last year.  Over a 10-year period their return was 12.5% and in the period of 1996-2021 it was 9.5%.

Looking at the performance of safe investments – long-term bonds – in Lithuania, the average annual return was 5.7% in the period of 1996-2021, 1.3% in 2012-2021 and -0.5 in 2021.

The return on Lithuanian deposits remained at zero in 2021 for a seventh year in a row, thus the long-term average return on this asset class since 1996 shrank to 4.1%.

Pension fund returns in 2021 were double-digit

Assets held by Lithuanian residents in the country’s second pillar pension funds increased by almost EUR 1.5 billion during the year to EUR 5.9 billion, with a 21% annual rate of return.

Fast rising equity markets in 2021 had a positive impact on pension fund returns, which strongly outperformed the long-term averages and inflation.

 

Individual asset classes yield different returns in different periods, so to reduce risk and sustain investment gains, spreading investments over a variety of areas is recommended.

 

Return by asset class in Lithuania
Asset class* 1996-2021 m. average annual return (%) 2012-2021 m. average annual return (%) 2021 m. return (%)
Housing for rent (costs estimated from 2016 in Lithuania) 14.1 9.7 26.4
Housing price in Lithuania 6.8 5 22.4
Shares of Lithuanian companies 9.5 12.5 18.3
Lithuanian short-term debt securities and money market instruments (deposits) 4.1 0.3 0.0
Lithuanian long – term bonds 5.7 1.3 -0.5
Lithuanian 2nd pillar pension funds 6** 7.6 21
Infliation 3.2 1.9 4.6
Lithuanian investment index 9.6 6.2 11

* Housing acquisition and rental returns calculated on the basis of Ober-Haus data. ** Since creation in 2004.

Read more in press release.

The Lithuanian Investment Index is an initiative of INVL Asset Management. Any use of the data herein must identify INVL Asset Management as the source.

Information is provided for information purposes only and cannot be construed as a recommendation, offer or invitation to invest in funds or other financial instruments managed by INVL Asset Management. When investing, you assume the investment risk. Investments can be both profitable and loss-making, you may not obtain financial benefits and you may lose some or even the entire invested amount. Past results of investments do not guarantee future results. When you make an investment decision, assess all the risks associated with investing and the key investor information documents. INVL Asset Management is not responsible for any inaccuracies or changes in this information or for any losses that may arise when investments are based on this information.