The Bank of Lithuania on 29 August 2023 has authorised INVL Asset Management to transfer the management of its 2nd and 3rd pillar pension funds and investment funds for retail investors to SB Asset Management, a company of the Šiaulių bankas Group, which has been granted a licence of an asset management company. INVL Asset Management’s team of investment managers will also join the new company and will continue to manage pension and investment funds as before.
In November of last year, Invalda INVL, the leading investment management and life insurance group in the Baltics, and Šiaulių bankas, the largest Lithuanian capital bank, signed an agreement to merge part of their retail businesses. Read more: www.invl.com/en/news/siauliu-bankas-and-invalda-invl-agree-deal-to-merge-their-retail-businesses/.
Following the transaction, the pension and investment funds, currently under management of INVL Asset Management UAB (legal entity code 126263073, registered office address Gynėjų g. 14, Vilnius, phone +370 700 55 959, email info@invl.com):
2nd pillar pension funds:
3rd pillar pension funds
Harmonised investment funds:
Special investment funds:
are intended to be transferred under management of SB Asset Management UAB, the asset management company of Šiaulių bankas (legal entity code 306241274, registered office address Gynėjų g. 14, Vilnius, phone 1813 (+370 37 301337 when calling from abroad), email kc@sb.lt) including all rights and obligations under the agreements concluded with the participants of these funds.
At the same time, it is intended to amend the operating documents (rules, prospectus, and other documents) of the funds accordingly, where the fund management company INVL Asset Management will be replaced by SB Asset Management (simultaneously changing all the contact details of the fund management company). The change to the funds’ rules and other documents is considered to be material. The amendments will come into effect at the earliest on the date of transfer of the funds management. No other changes to the funds’ rules or other documents are foreseen because of the transfer of management, and all other terms and conditions of investment in the funds will remain unchanged. Should such changes be made in the future, investors will be notified separately.
This will not affect the number of fund units held by fund participants or their chosen investment strategies. As a result, their investment risk will remain unchanged, fund participants will not incur any new liabilities because of their participation in the respective funds, and the management company’s obligations will remain the same.
There for fund participants don’t need to do anything, but they have right to act without any fees or deductions from the management company incur:
By the way, deductions related to switching to a different pension fund management company, terminating a 3rd pillar pension agreement, and redemption fees do not apply to investment fund units under any circumstances.
The management of the above funds is expected to be transferred to the new management company on 1 December 2023, although the specific date of transfer may change. If, for any reason, the agreement between Invalda INVL and Šiaulių bankas to merge part of the retail businesses is not implemented, no changes would be made to the operating documents of the management company and the funds. Fund participants would also be informed of this separately.
“The Bank of Lithuania’s approval of the transfer of asset management is another important milestone in this transaction, which shows that the merger is going smoothly and transparently. INVL and Šiaulių bankas’ teams are working closely together so that we can complete the merger of the retail businesses later this year, as planned, and become one team with the best experience and competences from both sides,” says Laura Križinauskienė, CEO of INVL Asset Management.
The merger of the retail businesses is expected to bring more value to customers, employees, and investors. Existing INVL customers will continue to benefit from professional savings, investment and life insurance solutions and will have additional access to other banking services. More on the transaction here: www.invl.com/en/the-merger-of-invl-and-siauliu-bankas-retail-business/
INVL and Šiaulių bankas merged their retail services as of 1 December 2023.
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INVL and Šiaulių bankas merged their retail services as of 1 December 2023.