The assets managed by the pension management company IPAS Indexo (hereinafter – INDEXO) have exceeded one billion euros for the first time today. This achievement has been reached thanks to a stable increase in the number of clients as well as the growth in the value of managed pension fund investments. Currently, INDEXO has more than 129 thousand clients and the assets under management exceed one billion euros.
“The first billion is evidence that the INDEXO strategy has been correct – we activated competition in the Latvian pension market and people have rightfully trusted our investment approach. The success of INDEXO is based on a strategy of investing in index funds, which has provided our clients with low costs and returns worthy of market leaders,” says Artūrs Roze, INDEXO asset manager.
The growth in the volume of clients and assets under management at INDEXO is accelerating over the years. For example, it took about 5 years of operation for INDEXO to reach the volume of 500 million euros in assets under management, while for the next 500 million euros, it took only about one and a half years. Similarly, the number of clients has been steadily increasing. For instance, at the end of 2020, there were 49 thousand clients, which doubled two years later to reach 100 thousand by the end of 2022, and currently stands at 129 thousand.
“Additionally, INDEXO consistently offers its clients investment strategies tailored to their age, which is why more than 70% of our clients’ pension savings are invested in 100% equity plans. For individuals under 55, 100% equity plans are the only correct choice, and among participants in Latvia’s 2nd pillar pension plans, about 70% or approximately one million workers fall into this category. Unfortunately, currently, 100% equity plans account for only 30% of the total accumulated savings in Latvia’s 2nd pillar pension plans. This means that approximately 600 thousand Latvian citizens, when retiring, will have significantly lower savings than they could have had by choosing an investment strategy appropriate for their age,” continues A. Roze.
As previously reported, in addition to pension management operations, since mid-2022, INDEXO has been developing the project for the establishment of a new bank, and the Bank of Latvia is currently reviewing its licensing application. Throughout 2023 work has been completed on a secure and modern banking IT infrastructure. INDEXO Bank’s mobile application has been developed with all necessary integrations for an impeccable customer experience. Additionally, fundamental products for individuals have been created, including current accounts, payments and cards, savings accounts and deposits, loans and, of course, convenient administration for third-pillar pensions. Upon receiving the license, INDEXO Bank will commence its operations serving individuals, while services for businesses will be developed in 2024.
