A benchmark describes the fund’s investment strategy and is made up of indices showing individual asset classes. The fund’s compliance with the benchmark is described by a tracking error with a maximum possible value of 5%.
The benchmark varies over time, depending on the average age of the participant. The total share of risky asset classes decreases by 5.12%/n each business day (the number of n-business days in the current year). The proportion of risky asset classes (i.e. shares) in the INVL Pension 1961-1967 fund’s benchmark is reduced from the beginning of 2019 to a fixed proportion in 2028. At the same time, the proportion of less risky asset classes (i.e. money market instruments and bonds) is increasing.
The risk level of bonds is reduced in 2019 and additionally in early 2024 by choosing shorter-term benchmarks of euro zone governments and investment grade companies.
More detailed information about changes in the benchmark is available in the investment strategy, section “Description of the strategic pension asset allocation”.
More about the benchmark or the component indices read here.
Structure on 2 January 2019:
89.00% MSCI ACWI IMI Net Total Return USD Index (MIMUAWON Index) (converted to EUR)
8.00% MSCI Emerging Markets Net Total Return USD Index (M1EF Index) (converted to EUR)
3.00% EONIA Total Return Index (DBDCONIA Index)
0.00% Bloomberg Barclays Series-E Euro Govt 5-7 Yr Bond Index (BERPG3 Index)
0.00% Bloomberg Barclays EuroAgg Corporate 5-7 Year TR Index Value (LEC5TREU Index)
0.00% J.P. Morgan Euro Emerging Markets Bond Index (EMBI) Global Diversified Europe (JPEFEUR Index)
0.00% J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI) Broad Europe Index (JCBBEURO Index), hedging Bloomberg USDEUR 6 Month Hedging Cost Index (FXHCUE6M Index)
0.00% J.P. Morgan Emerging Markets Bond Index (EMBI) Global Hedged Euro Index (JPEIGHEU Index)
Structure on 2 january 2019:
51,44% MSCI ACWI IMI Net Total Return USD Index (MIMUAWON Index) (converted to EUR)
4,62% MSCI Emerging Markets Net Total Return USD Index (M1EF Index) (converted to EUR) )
3,00% EONIA Total Return Index (DBDCONIA Index) )
8,19% Bloomberg Barclays Series-E Euro Govt 3-5 Yr Bond Index (BERPG2 Index) )
8,19% Bloomberg Barclays EuroAgg Corporate 3-5 Year TR Index Value (LEC3TREU Index) )
8,19% J.P. Morgan Euro Emerging Markets Bond Index (EMBI) Global Diversified Europe (JPEFEUR Index) )
8,19% J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI) Broad Europe Index (JCBBEURO Index), hedging Bloomberg USDEUR 6 Month Hedging Cost Index (FXHCUE6M Index) )
8,19% J.P. Morgan Emerging Markets Bond Index (EMBI) Global Hedged Euro Index (JPEIGHEU Index)
Details of the depository protecting the assets of the pension fund:
SEB bankas AB
Gedimino pr. 12, LT-01103, Vilnius
Please remember that for participants in 2nd pillar pension accumulation, the state social insurance retirement pension for the period prior to 31 December 2018 is proportionately reduced as established by law, except for persons participating in pension accumulation prior to 31 December 2018 who between 1 January 2019 and 30 June 2019 exercised their right to terminate pension accumulation – reduction of the state social insurance age-old pension will not apply to such persons. The additional State contribution does not reduce the amount of the retirement pension. A 2nd pillar pension accumulation agreement cannot be terminated, unless it is a first-time agreement, in which case the participant may unilaterally terminate the agreement within 30 calendar days after signing the agreement, by giving written notice to the pension accumulation company. Persons who became participants before 31 December 2018 had the right to terminate their participation in the accumulation of pensions or to suspend the transfer of pension contributions to the pension fund from 1 January 2019 to 30 June 2019.
Participants in accumulation in pension funds assume the investment risk. The pension accumulation company does not guarantee the profitability of pension funds. The value of a pension fund can go both up and down, and you can get back less than you invested. Past performance of a pension fund does not guarantee the same results and profitability in the future. Past performance is not a reliable indicator of future results.
Choose a pension fund responsibly and carefully. Please pay attention to investment risks and applicable deductions. Carefully read the rules of the pension fund, which are an integral part of the pension accumulation agreement.
If you accumulate a certain amount in your pension fund, you must use it to purchase a pension annuity – a periodic pension benefit paid as long as you live. Currently, a pension annuity is mandatory when the amount of the basic pension annuity calculated for a pension fund participant is at least half the amount of the state social insurance basic pension. From 1 July 2020, the annuity will be mandatory if you have accumulated €10,000, and the annuity will be paid by the Board of the State Social Insurance Fund under the Ministry of Social Security and Labour (hereinafter – the “Board”), with which you will conclude an annuity payment agreement. The accumulated amount will be transferred to the Board’s account, which will undertake to pay you the agreed annuity as long as you live. More information about a pension annuity is available here.
All the information presented is of a promotional nature and cannot be construed as a recommendation, offer or invitation to accumulate assets in pension funds managed by INVL Asset Management. The information provided here cannot serve as a basis for any subsequently concluded agreement. Although this information of a promotional nature is based on sources which are considered to be reliable, INVL Asset Management is not responsible for any inaccuracies or changes in the information, or for any losses that may incur when investments are based on this information.