The fastest-growing pension manager in Latvia, joint-stock investment management company “Indexo” (hereinafter – INDEXO) closed last year with a profit of EUR 220,700, as opposed to a loss of EUR 10,700 in 2020. The number of participants in INDEXO pension plans increased by 33% last year, amounting to 64,800. The value of assets managed by the company rose by EUR 190 million or 67% to EUR 468 million at the end of last year.
In terms of the number of new clients, INDEXO was the fastest growing manager of the State funded pension scheme funds in 2021. At the beginning of last year, INDEXO managed 5.5% of all State funded pension scheme funds, while at the end of the year its market share increased to 7.7%.
“We are pleased with another year of excellent growth in the amount of assets managed by INDEXO and in the number of the company’s clients. Development remains a priority for INDEXO. The main objective this year is the initial public offering (IPO) and the establishment of a new bank. In addition, we continue to attract new pension plan members. Compared to 2020, our investment in attracting new customers was increased more than twofold last year. Our goal at the moment is not immediate profit, but the company’s value in the long term, and this year we will continue to make substantial investments to increase our market share,” says INDEXO Chairman of the Board and one of the company’s founders, Valdis Siksnis.
Last spring, INDEXO subsidiary AS INDEXO Atklātais Pensiju Fonds (INDEXO Open Pension Fund, hereinafter – INDEXO APF) introduced innovative 3rd pillar pension plans in Latvia, investing more than EUR 200,000 in development and customer acquisition in 2021. Consolidated profit of INDEXO Group, which also includes INDEXO APF, amounted to EUR 8,910.
“Last year, we also launched low-cost, passive management 3rd pillar pension plans, where each client can choose the optimal investment distribution between shares and bonds, regularly updating this distribution according to the client’s age. We also continued to work on reducing the costs of managing indirect assets,” says Valdis Siksnis.
As reported, INDEXO plans to launch an IPO at the end of the second quarter of this year, aimed at attracting investment in order to set up a bank in addition to its existing pension management business. INDEXO will apply for a commercial banking license later this year and hopes to obtain the license by the end of the year with a view to phasing in banking services shortly thereafter.
Following the IPO, INDEXO shares will be listed on the official Baltic List of the Nasdaq Riga stock exchange. Further information on the IPO will be provided in the IPO prospectus, which will be submitted to the Financial and Capital Market Commission (FCMC) in the coming months.
More information is available here: https://indexo.lv/investoriem