Šiaulių Bankas, the largest bank with Lithuanian capital, and Invalda INVL, the leading investment management and life insurance group in the Baltic region, on 22 November 2022 signed an agreement to merge their retail businesses in order to create a modern and customer-focused next-generation financial market participant that will subsequently increase competitiveness in a market that is dominated by financial institutions with foreign capital and will create added value for the Lithuanian economy in general.
After the closing of the transaction, the Šiaulių Bankas group, in addition to the financial services it already offers, will manage second-and third-pillar pension funds and mutual funds in Lithuania and will provide life insurance services throughout the Baltic countries. It is planned for the bank’s subsidiary SB Draudimas to take over INVL Lif’s insurance business in Lithuania, Latvia and Estonia, while the pension and mutual funds business in Lithuania will be carried out through a newly established management company SB Asset Management within the Šiaulių Bankas group.
After transaction is completed, the Invalda INVL group will remain active in the management of private equity and alternative investments, providing Family Office services as well as managing second-and third-pillar pension funds in Latvia.
Completion of the merger of the retail businesses of Šiaulių Bankas and Invalda INVL is planned on 1 December 2023.
Please find the answers to frequently asked questions below:
SB Asset Management will become the manager of your pension fund. However your pension fund will continue to be managed by the same experienced and competent team of investment managers, which will also be transferred to the new company This will not affect the number of fund units you held or the chosen investment strategies. Your investment risk will remain unchanged, and you will not incur any new liabilities because of your participation in the respective fund, and the management company’s obligations will remain the same.
The merger is intended to be completed on 1 December 2023. Until then INVL will perform as usual.
Regarding this merger, you do not need to do anything. Your pension or investment fund management company will change. Respectively, it is intended to amend the operating documents (rules, prospectuses, investment strategies and other documents) of the pension funds, where the management company INVL Asset Management UAB will be replaced by SB Asset Management UAB, and all the contact details of the fund management company will be updated. These changes to the Funds’ operating documents are considered material.
As a result, as a Participant of 3rd pillar pension funds, you have the right to terminate your 3rd pillar pension contract without any fees or deductions from the management company before the change of fund manager. You also have the right to request redemption of your units without a redemption fee.
Personal assets accumulated in the III pillar pension funds are separated from the assets of the asset management company and are stored in a depository (the bank). Asset protection is one of the most important guarantees for the safety of funds. Therefore, if the fund management company changes, the participants do not lose their accumulated funds, they are simply being managed by another fund management company (but by the same management team).
We will keep you informed about the key phases of transition and will abide by all legal and regulatory requirements to properly ensure customers’ rights. Further information will be provided both through public announcements and individually.
Up until the moment of the businesses merge, which is expected on 1 December 2023INVL Life will operate as usual.
INVL’s employees and their expertise are essential part of the agreement. Without them the merger could not be completed. Thus, INVL’s biggest input in this merger is people: their experience, competencies, strategies, and processes.
The top professionals, whose achieved results, we believe, you appreciate, will continue to manage pension funds. The merger 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.
In the future, INVL customers will be provided not only investment and pension fund management services, but also everyday banking services – bank accounts, credit cards, housing, and consumer loans – all from one institution. Integration will make it possible to better assess the expectations and capabilities of customers and adapt to their needs.
Šiaulių bankas groups clients will be able to supplement their basket of financial services with competently managed investment funds for non-professional investors, II and III pillar pension funds, and new life insurance investment directions.
These changes are relevant for INVL customers:
Regarding this merger, you do not need to do anything. Your pension fund management company will change. Respectively, it is intended to amend the operating documents (rules, prospectuses, investment strategies and other documents) of the pension funds, where the management company INVL Asset Management UAB will be replaced by SB Asset Management UAB, and all the contact details of the fund management company will be updated. These changes to the Funds’ operating documents are considered material.
As a result, as a Participant of 2rd pillar pension funds, you funds have the right to switch to another pension fund or another pension fund management company without any deductions before the change of fund manager.
Personal assets, accumulated in the II pillar pension funds are separated from the assets of the asset management company and are stored in a depository (the bank). Asset protection is one of the most important guarantees for the safety of funds. Therefore, if the fund manager changes, the participants do not lose their accumulated funds, but they are simply being managed by another fund management company (but by the same management team).
Regarding this merger, you do not need to do anything. Once the deal is completed, your insurance company will change and will take over all obligations under contract. No other contract terms will change due to the merger.
Insurance companies are required by law to make sufficient technical provisions to cover all their obligations under insurance contracts. When there is a change of insurance company, the rights and obligations under insurance contracts are transferred together with the assets for the technical provisions
Accumulating in II or III pillar pension funds or life insurance contract does not require to have an account at the same financial institution.
Yes. “Invalda INVL” will remain active in the management of private equity and alternative investments, provide Family Office services, and manage pension funds in Latvia.
Following this merger of retail businesses and other planned share acquisitions that have been announced, “Invalda INVL” equity stake in Šiaulių Bankas will increase.
We aim to transform Šiauliai bankas into a new generation modern, flexible, financial service provider that is closer to people.
The synergy of two strong Lithuanian capital businesses will create greater economic value for Lithuania and ensure the greatest benefits for both customers, employees, and shareholders, which will be joined by such business leaders as the global technology group “Tesonet”, and “ME Investment”, the manager of the logistics company group “Girteka Logistics”.
By combining the retail businesses of INVL and Šiaulių bankas, we will offer the best what both organizations have on the market – INVL’s competences in the areas of investment, II and III pillar pension fund management, and Šiaulių bankas’ competences in the areas of retail banking and financing.
Šiaulių Bankas has been operating since 1992 and is a stably and consistently growing financial partner with a special focus on business and consumer financing solutions. The shares of Šiaulių Bankas are on the Main List of the Nasdaq Vilnius stock exchange.