Pension management company IPAS Indexo (hereinafter – INDEXO) this January overtook one of Latvia’s consumer service banks – Luminor bank – by the value of assets under management in the 2nd pension pillar plans. On January 24, the market value of the 2nd pillar pension plans managed by INDEXO was EUR 604,8 million, while the 2nd pillar pension plan assets managed by Luminor bank were worth EUR 603,8 million.
In the beginning of 2022 Luminor Bank was still ahead of INDEXO by approximately EUR 200 million, but dynamic growth in client acquisition over the last 12 months has allowed INDEXO to reach the pension management business scale of the large Latvian retail banks.
“INDEXO, in slightly more than five years, with an innovative for Latvian market investment management approach tracking world market indices, has achieved the asset under management volume of Latvia’s largest universal banks. Besides, we have done it without the sales channels, which are available for our main competitors and our growth continues. We have not changed our values and we will continue to promote competition in order to ensure better financial services for Latvia’s residents,” said Valdis Siksnis, INDEXO board chairman and one of the founders.
As reported, in parallel to pension management, INDEXO is actively working on a new commercial bank project and recently submitted the application for a banking licence. In addition, INDEXO is working on development of services, IT systems and risk management model, as well as other issues related to the operation of the new bank.
Last summer INDEXO conducted its IPO where it successfully raised EUR 7.49 million and the company’s shares were oversubscribed by around EUR 2.5 million. In the IPO, investors acquired the pension management company’s shares, and it is planned that the new INDEXO bank will be a subsidiary of the pension management company. INDEXO shares were listed on July 15, 2022, on Nasdaq Riga Baltic Main List. The ticker symbol of INDEXO shares in IDX1R.
Bank (credit institution) license is subject to authorization granted by the European Central Bank based on the proposal from the Bank of Latvia.