Hanseatic Alternative Investments Managing Partner, Arturs Miezis, recently provided expert commentary in the Delfi article, “Kur tiek ieguldīta Latvijas pensiju nauda?”. The piece delves into how Latvia’s pension funds are being allocated and the impact of these decisions on the national economy.
Despite over €8 billion being accumulated in the second pillar pension funds, a mere 7% of these assets are invested locally, while the vast majority is directed abroad to support foreign economies and enterprises. This approach has far-reaching consequences for Latvia’s economic growth and infrastructure development.
Miezis observed:
“By seeking investment opportunities abroad, pension plans leave local projects, businesses, and infrastructure insufficiently financed. This trend significantly limits Latvia’s potential economic growth, where the lack of investments hampers productivity increases and, consequently, the rise in living standards.”
He emphasized that focusing on domestic investments could create a positive economic ripple effect. This includes stimulating local businesses, increasing wages, and boosting pension returns. According to Miezis, prioritizing local investments not only supports Latvia’s long-term prosperity but also enhances financial stability for future retirees.
This article highlights the need for a balanced approach between diversification and meaningful local investment to ensure both economic development and the sustainability of Latvia’s pension system.
To read the full article, visit Delfi https://www.delfi.lv/bizness/37293360/bankas_un_finanses/120050857/kur-tiek-ieguldita-latvijas-pensiju-nauda