Lithuanian Investment Index

The Lithuanian Investment Index is developed by INVL Asset Management, one of the country’s leading asset management firms. It shows how returns on investments in the country’s four main asset classes have evolved since 1995.

Lithuanian Investment Index (1996–2018)

The index is calculated on the basis of investment returns for short-term debt securities and money market instruments (deposits), long-term bonds, stocks, 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. Annual returns for the Lithuanian Investment Index and its constituent asset classes (1996–2018):

According to the index, the average return on investments in Lithuania in 2009–2018 was 6.3 per cent. For the period 1996–2018, meanwhile, the figure was 9.8 per cent, confirming the benefits of long-term investments.

In 2018, the return on the Lithuanian Investment Index was 0.7 per cent, and investments in rental housing stood out with a gain of 8.1 per cent. Meanwhile, the return on investments in stocks in the country was negative (-5.6 per cent). Inflation in 2018 was 2.5 per cent and was higher than the return of long-term Lithuanian bonds (0.3 per cent) and deposits (gave no return).

The main investment return and inflation in Lithuania in 1996–2018



 

The investment return on rental housing in Lithuania has varied greatly: the average return over the period 1996-2018 was 14.0%, while for 2009-2018 it was 3.1%.

The return on Lithuanian stocks in 2018 was negative, at -5.6%, but exceeded the return on European and global stocks. It was also larger over the last 10 years (2009-2018), when it was 13.2%, and over the last 23 years (1996-2018), when it was 8.6%.

Pension funds from their inception in 2004 through the end of 2018 earned a 4.2% average annual return. For 2009-2018 that return was 5.4% and exceeded not only inflation, but also the return on the country’s long-term bonds, deposits, and rental housing.  

Looking at the performance of safe investments –long-term bonds– in Lithuania, from 1996 to 2018 their return was 6.4%, while in 2009-2018 it was 5.2%, and in 2018 it was just 0.3%.

The return on deposits in Lithuania in 2018 was zero, as it has been for the last four years. In 1996-2018 the return on deposits was 4.6%, while in 2009-2018 it was 1.5%.

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.


Average return by asset class

Asset class 1996–2018 average, per cent 2009–2018 average, per cent 2018 return, per cent
Housing prices and rental income (net of expenses starting in 2016) 14.0 3.1 8.1
Housing prices in Lithuania 6.3 -1.7 3.9
Lithuanian companies' stocks 8.6 13.2 -5.6
Lithuanian long-term bonds 6.4 5.2 0.3
Short-term debt securities and money market instruments (deposits) 4.6 1.5 0.0
2nd pillar pension funds 4.2* 5.4-3.9 -3.9
Inflation 3.3 2.0 2.5
Lithuanian Investment Index9.8 9.8 6.3 0.7

* Since creation in 2004.

More information can be found in the INVL Asset Management 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 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 all of the invested amount. Past results of investments do not guarantee future results. When making a decision to invest, you should 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 losses that may arise when investments are based on this information.