Changes in the offer of 2nd pension pillar investment plans

In order to further expand the investment opportunities of the participants of the 2nd pension pillar plan, this year, on October 6, IPAS SEB Investment Management will make changes in the offer of investment plans – the “SEB European plan” will be added to the “SEB active plan” and the “SEB Latvian plan” will be added to the “SEB conservative plan”.

The addition of both plans will take place at the same time. Changes in the plan offer are made with the permission of the State Social Insurance Agency (hereinafter – SSIA) and the approval of the Financial and Capital Market Commission.

This year, on August, SSIA will send by post an explanatory statement to each participant of the “SEB European plan” and the “SEB Latvian plan” with all the necessary information, opportunities and rights of the participants.

Details of upcoming changes:

• Adding the “SEB European plan” to the “SEB active plan”. After adding the plan its funds will be managed in accordance with the investment strategy and policy of the “SEB active plan”. The participants of the “SEB European plan“ will maintain a low management fee and the same proportion of equity in the investment plan (up to 50% of the assets can be invested in equity), in addition, will gain a much wider range of investments. Contributions made by participants will be invested worldwide, including in Europe.

  Taking into account the trends in the financial market, SEB Investment Management managers believe that in the future, broadly diversified global equity and bond investments will enable participants to increase their pension capital in the long run.

• Adding the “SEB Latvian plan” to the “SEB conservative plan”. After adding the plan its funds will be managed in accordance with the investment strategy and policy of the “SEB conservative plan“. The participants of the “SEB Latvian plan“ will maintain a low management fee and the same investment plan category (no investments in equity), in addition, will gain a much wider range of investments. Investments will be made in Latvia, supporting the local economy, companies and environmentally friendly initiatives, as well as in the Baltics, Europe and around the world.

  Taking into account the expected low rates of Latvian government bonds, as well as trends in the financial market, SEB Investment Management managers believe that in the future it is global fixed income investments that will enable members to increase their pension capital in the long run.