INVL Asset Management will merge its 2nd pillar pension funds. The decision is based on the company’s goal of offering clients a clear and effective approach to saving for retirement. After the merger, INVL Asset Management will offer four pension funds in place the current seven. The Bank of Lithuania on 21 September approved the fund merger, completion of which is planned on 31 December 2015. The merger involves six of the seven 2nd pillar pension funds that the company manages.
“It’s the needs of our clients that are behind this decision, since once the merger process is complete our 2nd pillar pension funds will have an investing strategy tailored to the needs that people have at different stages in their life,” says INVL Asset Management CEO Darius Šulnis. Pension fund participants will not experience any changes due to the merger – they will continue to accumulate savings for retirement under the same terms: the funds’ investing strategies, objectives and risk levels will not change, and applicable fees will either be the same or smaller than at present.
The need to combine pension funds arose out of the merger of INVL Asset Management and MP Pension Funds Baltic. From 1 September, INVL Asset Management became the manager of all of MP Pension Funds Baltic’s pension funds. As a result, the investing strategies and risk levels of some of the company’s 2nd pillar pension funds are now identical.
In addition, in order to make choosing pension funds easier, the names and rules of INVL Asset Management’s 2nd pillar pension funds will be changed as of 30 September, and those of the 3rd pillar pension funds will change as of 14 October. In the names of the funds, the fund management company will be indicated as “INVL” (instead of the previous “Finasta” or “MP”). Each name will also specify the pension fund pillar and the age of participants for which the fund is recommended.
After the merger, INVL Asset Management will offer 2nd pillar pension fund participants a choice of the conservative investment pension fund INVL STABILO II 58+ (into which the conservative investment pension fund MP STABILO II will be merged), INVL MEDIO II 47+ (into which the INVL Active Investment pension fund will be merged), and INVL EXTREMO II 16+ (into which the INVL Rational Risk pension fund will be merged). (The pension fund names indicated are those which will take effect as of 30 September.) The low-equity-exposure fund known until now as the Finasta Growing Yield pension fund, which is not involved in the mergers, will continue under the new name INVL MEZZO II 53+.
Completion of the pension fund merger is planned on 31 December. On the day of merger completion, the accumulated assets of participants of discontinued funds will be converted, free of charge, to units of the pension funds operating after the merger, at the redemption prices for pension fund units of 30 December. The value of participants’ accumulated pension fund assets will not change due to the merger, though the total number of pension fund units in a personal pension account after the merger may differ due to differences in the prices of the units of the merged pension funds.
On account of the pension fund merger, starting 28 September no new pension accumulation agreements will be made for those pension funds which will be combined into others (MP STABILO II, INVL Active Investment, INVL Rational Risk). To ensure successful merger completion, on 28-31 December other operations for these funds will also be limited.
As of 1 September 2015, INVL Asset Management managed seven 2nd pillar and four 3rd pillar pension funds. The company had 110,000 pension fund clients, and pension assets under management of 181 million euros.
The merger of the companies MP Pension Funds Baltic, INVL Asset Management and INVL Fondai is currently underway. They will in the future operate under the name of “INVL Asset Management”. INVL Asset Management is owned by Invalda INVL, one of the leading asset management groups in the Baltic countries. Companies in the Invalda INVL group manage pension and mutual funds, alternative investments, individual portfolios, private equity and other financial instruments. More than 150,000 clients in Lithuania and Latvia as well as international investors have entrusted over 300 million euros of assets to their management.
Invalda INVL in 2014 acquired the asset management companies INVL Asset Management (previously named Finasta Asset Management, with units in Lithuania and Latvia) and MP Pension Funds Baltic.
| Pension fund investment risk group | Fund name before change of rules | Fund name after change of rules | Funds that will operate after the merger |
|---|---|---|---|
| 2nd pillar pension funds involved in the merger (new rules and names take effect from 30 September 2015, except for the MP STABILO II fund) |
|||
| Conservative investing | Finasta Conservative Investment pension fund | INVL STABILO II 58+ | INVL STABILO II 58+ |
| MP STABILO II | MP STABILO II (name and rules not being changed) | ||
| Medium equity share | Finasta Active Investment pension fund | INVL Active Investment | INVL MEDIO II 47+ |
| MP MEDIO II | INVL MEDIO II 47+ | ||
| Equity pension fund | Finasta Rational risk pension fund | INVL Rational Risk | INVL EXTREMO II 16+ |
| MP EXTREMO II | INVL EXTREMO II 16+ | ||
| Continuing 2nd pillar pension fund (not involved in the merger of pension funds) (new rules and names take effect from 30 September 2015) |
|||
| Small equity share | Finasta Growing Yield pension fund | INVL MEZZO II 53+ | INVL MEZZO II 53+ |
| Pension fund investment risk group | Fund name before change of rules | Fund name after change of rules | |
|---|---|---|---|
| 3rd pillar pension funds (new rules and names take effect from 14 October 2015) |
|||
| Equity | Finasta Equity Pension Plus | INVL III Equity | |
| MP EXTREMO III | INVL EXTREMO III 16+ | ||
| Bond | Finasta Bond Pension Plus | INVL STABILO III 58+ | |
| Mixed investment | MP MEDIO III | INVL MEDIO III 47+ | |
More information:
Ieva Dunajevaitė-Narmontienė,
Head of Communication, INVL Asset Management
Tel. +370 610 345 77
E-mail [email protected]
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INVL and Šiaulių bankas merged their retail services as of 1 December 2023.