CEE roundup: Russia, Lithuania, Latvia

first_imgIn the context of ongoing government discussions about making the system voluntary, the Bank of Russia pointed out that membership of the existing voluntary private system had fallen by 400,000 to fewer than 6.4m, citing waning confidence in the system and negative returns.It said it doubted whether employers, faced with declining economic growth, would be in a hurry to establish corporate pension schemes.The NSPFs are set to receive the frozen contributions from the second half of 2013 once they convert to joint-stock status, meet minimum capital requirements and join the guarantee system, as stipulated by the law that came into effect this year.While the funds providing compulsory pension insurance have until the beginning of 2016 to fulfil the new obligations or leave the market, the major ones have not wasted any time.As of the beginning of October, NSPFs accounting for 91% of total assets had converted their status to companies, while those in the new guarantee system accounted for more than 85%.In other news, Lithuania’s voluntary second-pillar funds posted further healthy results in the third quarter of 2014.According to the Bank of Lithuania, the sector regulator, as of the end of September 2014, year-to-date returns averaged 6.04%, some 2.5 times higher than a year earlier.The five funds with the highest equity exposure generated the best returns, with those investing up to 100% in shares generating 6.88%.The nine funds with up to 70% equity exposure returned 6.4%, while the four funds with a low exposure of up to 30% produced 6.21%.In contrast, the eight bond-only conservative funds generated returns of only 3.15%.Over the nine-month period, assets under management grew by 14.3% to LTL6.2bn (€1.8bn).In the case of the third pillar, assets grew by 13.9% to LTL148m.Returns averaged 5.8%, with the balanced funds generating the highest average return, of 6.58%, followed by high equity-weighted funds at 6.51%, while the bond-orientated funds generated 2.57%.In neighbouring Latvia, year-to-date returns for the mandatory second-pillar funds were somewhat lower, averaging 4.21% for their 1.2m members, according to the Association of Commercial Banks of Latvia.Balanced and higher-risk funds returned 4.36% and 4.35%, respectively, while the conservative funds generated 3.79%.Assets grew by 14.5% to €1.9bn.For the much smaller third-pillar system, with €259.7m of assets and 229,318 members, returns average 4.19%. Russia looks set to extend the 2014 moratorium on contributions to the mandatory pension fund system for a further year.In October, the bill passed its first reading in the Duma (lower house) by an overwhelming majority, with 242 deputies voting in favour, and only five against.The Bank of Russia, the central bank, estimated in its October Financial Stability Review that the non-state pension funds (NSPFs) would forgo some RUB243bn (€4.5bn) as a result of the 2014 moratorium, and a further RUB280bn the following year if the bill passes its subsequent readings and is signed off by president Vladimir Putin.The central bank expressed concerns that the moratoria might hamper long-term investment growth, exacerbate the downturn in economic growth and raise the cost of internal funding.last_img read more

Tennis News Roger Federer wins emotional 99th career title with win in Swiss Indoor tournament

first_imgRead More | Ayodhya Land Dispute: Supreme Court posts matter for January 2019 to fix a date for hearing appealsFederer holds the record for the most Grand Slam titles, winning 20 titles, including a record eight Wimbledon titles. However, Federer is not sure of how long he will continue in 2019.Speaking after the win, Federer said, “To come here and win again in my home town never knowing if this might be your last time that you had the opportunity to play a finals and maybe win for the last time here in my city, it obviously means a lot to me and becomes emotional always at the very end,” Federer said.Read More | Bhima Koregaon case: Supreme Court stays Bombay HC order that refused to grant Pune police more time to file chargesheetOver the last couple of years, Federer has skipped tournaments as he looks to manage his schedule. In the last couple of years, this strategy has worked with the Swiss Maestro securing the Australian Open and Wimbledon in 2017 and securing the Australian Open title again in 2018.However, he has experienced a dip in form and that has allowed the likes of Rafael Nadal and Novak Djokovic to win the remaining Grand Slam titles to close the gap. Federer next plays in the Paris Masters and he is in a tough draw with Djokovic and Kevin Anderson, the Wimbledon finalist in the same group. New Delhi: At age 37, Roger Federer, considered one of the greatest Tennis players in history, is on the cusp of a retirement. However, he showed that his passion for winning has still not dimmed after beating Romania’s Maruis Copil in the final of the Swiss Indoor tournament to become the most successful player in the event’s history with a 7-6, 6-4 triumph.The win was not only Federer’s ninth title in Basel, but it gave him his 99th career title in tennis. He is now second in the all-time list, with USA’s Jimmy Connors the only player so far to have hit 109 career titles. For all the Latest Sports News News, Tennis News News, Download News Nation Android and iOS Mobile Apps.last_img read more