This year, pension management company IPAS “Indexo” (hereinafter – INDEXO) plans to increase its assets under management by 56%, from EUR 584 million at the end of 2022 to EUR 900 million by the end of this year. Likewise, INDEXO plans to attract around 28,000 new clients during the year, with the total number of 2nd and 3rd pillar pension plan clients expected to grow to around 128,000, which would be an increase of 28 % from the end of 2022, when the total number of INDEXO clients was 99,700.
“Thanks to the positive response from Latvia’s residents, well-organized sales process and clients’ recommendations, INDEXO is still the fastest-growing pension manager in Latvia. Our innovation in the Latvian market – the passive investment model, or index approach, – is showing by far the best long-term results. Unfortunately, less than 15 percent of pension savings in Latvia are managed this way. It means that INDEXO still has a great growth potential and that a lot of positive change still has to be achieved in the Latvian financial market,”says Valdis Siksnis, INDEXO Board Chairman and one of the founders of the company.
As a result of a significant growth of assets under management and client numbers, the company also expects substantial revenue growth. This year, INDEXO plans its revenue from pension management to reach EUR 3.2 million as compared to EUR 2.3 million in 2022.
As previously reported, in parallel to pension management, INDEXO has been actively working on a new commercial bank project and at the end of last year filed for a banking license. INDEXO is also working on the new banks’ product portfolio, development of its IT systems and risk management models as well as other matters related to the operations of the would-be bank.
Bank (credit institution) license is subject to authorization granted by the European Central Bank based on the Bank of Latvia proposal.
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