Luminor has created a new Progressive investment plan that will allow the clients to invest up to 75% of their 2nd pillar pension capital in company shares. The target audience of the new plan could count about 190 thousand clients with at least three thousand Euro of savings on their 2nd pillar plan and having more than 20 years until the retirement.

“Luminor Progressive investment plan is created for the entrepreneurial people, who are not afraid of considerable fluctuations of capital, which in 20 or more years may pay off in spades,” states Armands Locmelis, member of the Board of Luminor Asset Management IPAS. “Choosing this plan, clients should keep in mind the increased fluctuation risk, but at the same time it involves a potentially higher profit determined by a bigger investment in company shares”.

“By now our pension products were used by people with high incomes. Luminor clients have the higher average 2nd pillar pension capital among all Latvian banks - 3.5 thousand Euro on average as opposed to the average industry level 2.6 thousand Euro. Moreover, the average capital of our clients is much bigger within the 2nd pillar pension plans with higher investments in company shares”.

As previously announced, this year the amendments of legal enactments made it possible to supplement our 2nd pillar pension plan offers by a new product – the investment plan allowing to place up to 75% of the funds in company shares. “In spite of the tendency of population ageing, at least 780 thousand clients of the 2nd pillar plan in Latvia will retire in 20 or more years. Instead of the existing offers, they would benefit more from a higher-risk investment solution”, states Armands Locmelis.

To ensure a competitive range of products, Luminor will continue offering its clients all strategies of investment in the pension capital, not only a well-known conservative strategy (investments are made in bonds and similar financial instruments only), as well as the balanced and active strategies (up to 25% and up to 50% of shares correspondingly), but also the new progressive plan (investment in company shares up to 75%).

To apply for Luminor Progressive investment plan, go to latvija.lv and sign in to Luminor Netbank with your login and password on the portal latvija.lv.

Administrator: Luminor Asset Management IPAS, Skanstes iela 12, Riga; custodian bank: Luminor Bank AS. You can find the plan booklet and other documents at Luminor webpage.