2016-01-04

INVL Asset Management completes merger of second pillar pension funds

Domestic asset management company INVL Asset Management announces that it has completed a merger of second pillar pension funds and from this day forward will be managing four second pillar pension funds instead of seven. The decision to merge pension funds was made in an effort to offer a clear and effective concept for building retirement income.

No changes to the members in the funds will result from this merger and members will continue earning pensions under the same or even better conditions: investment strategy of funds, goals, risks assumed and fees charged have not changed and on some occasions such fees even went down.

“This merger has allowed us to further refine the strategy of building retirement income depending on member’s age – from now on individuals can choose from pension funds adapted to different stages of life,” said Ramūnas Stankevičius, Director of the Department of Pension Funds and Retail Sales at INVL Asset Management.

After the merger the company offers membership in one of four second pillar pension funds managed by the company, namely, INVL EXTREMO II 16+, INVL MEDIO II 47+, INVL MEZZO II 53+, INVL STABILO II 58+. These pension funds are classified by investment strategies and risks recommended for each specific stage of life and investment risks are minimised by taking member’s age into account.

MP STABILO II, a conservative investment fund, was merged with another conservative pension fund INVL STABILO II 58+, INVL Active Investment pension fund was merged with INVL MEDIO II 47+, and INVL Rational Risk pension fund with INVL EXTREMO II 16+. Assets earned by members in these funds were converted free of charged to units in pension funds continuing post-merger based on the unit values as of December 30, 2015.

The need to merge pension funds emerged as a consequence of the merger between INVL Asset Management and MP Pension Funds Baltic after INVL Asset Management becoming the sole manager of all pension funds previously run by MP Pension Funds Baltic which happened on September 1, 2015. Before the merger the company ran as many as seven second pillar pension funds with identical investment strategy and risks in several of them. On September 21, 2015 the merger was approved by the Bank of Lithuania.

As of December 31, 2015 INVL Asset Management ran four second pillar and four third pillar pension funds. At the end of the year the company had around 110 thousand members and €195.9m in assets managed.

INVL Asset Managementis part of one of the leading asset management groups in the Baltics Invalda INVL. Companies of the group manage pension and investment funds, alternative investments, individual portfolios, private equity and other financial instruments. More than 150 thousand clients in Lithuania and Latvia as well as international investors have entrusted over €300m in assets to the group.