INVL has been managing pension funds since 2004. For 14 years the company specialized in investment management and accumulated tremendous experience. From 2004 to 2019, the company ran 2nd pillar pension funds that operated according to a fixed investment strategy. As of 2019, 2nd pillar pension funds in Lithuania operate according to the life-cycle principle.
The experience the company built up between 2004 and 2019 is confirmed by the outstanding long-term results that INVL’s 2nd pillar pension funds achieved during that period:
- EARNINGS FOR CLIENTS:
The main objective of the managers of INVL’s pension funds is to earn as big a return as possible for clients. How much a person earning the average wage could have earned, after deducting applicable fees, by accumulating in a pension fund is shown by the indicator for the internal rate of return of the country’s 2nd pillar pension funds which the Bank of Lithuania publishes.
Bank of Lithuania data for the end of September 2018 show INVL’s 2nd pillar pension funds had been operating for between 11 and 14.3 years, and their average annual internal rate of return from inception ranged from 3.2 per cent for the bond fund to 8.5 per cent for the equity fund, considering the return to participants contributing their own money. By the way, the 8.5 per cent average rate of return that the INVL EXTREMO II 16+ fund earned over its 11 years of operation was the highest among all the country’s pension funds (excluding those that operated for less than a year).
- LONG-TERM PERFORMANCE:
At the end of 2018 the performance of INVL’s pension funds over the last 5 years in terms of the average annual return earned was the best in the majority of pension fund categories, not including life-cycle funds (according to the results of the country’s pension funds at the end of 2018 published by the Bank of Lithuania).
Under this indicator, INVL’s pension funds ranked first in three of the four 2nd pillar categories (in the small and medium equity share and equity pension fund categories) and in all 3rd pillar categories.
Among all the country’s funds, the one that earned the highest – 7.2 per cent – average annual return during this period was the INVL EXTREMO II 16+ 2nd pillar pension fund (the return on its benchmark index was 7.27 per cent).
- INTERNATIONAL RECOGNITION:
At the 2018 IPE Awards for European pension funds, the INVL Mezzo II 53+ 2nd pillar pension fund was recognized as the best pension fund in the Central and Eastern European Funds category. The IPE Awards are one of the most important events in the field of European pension funds. For the 2018 awards, pension funds in 24 European countries submitted a total of 459 applications in 42 categories.
- CLIENTS’ RECOGNITION:
From the start of 2016 through the end of 2018, the number of INVL 2nd pillar pension fund clients grew by 27 per cent, or three times more than the market, to 134,600 (source: Bank of Lithuania).
Accumulating in pension funds entails assuming investment risk. The pension accumulation company does not guarantee the profitability of pension funds. The value of a pension fund unit may both rise and fall. You may recover less than you invested. The results of the management of a pension fund’s past investments do not guarantee the same results or profitability in the future. A past period’s results are not a reliable indicator of future results.
We recommend choosing a pension fund responsibly and carefully, noting the risks associated with investments and the fees that apply, and attentively reading the rules of the pension fund, which are an integral part of the pension accumulation agreement.