The Index Plus strategy
Index Plus investing is our chosen solution that combines the benefits of low-cost, efficient and widely dispersed index investing with a higher risk-return objective in private alternative markets. Investing in private markets requires a different kind of effort, investment and legal knowledge, experience and professional judgement. We only select investment manager teams that have a proven track record of unlocking the potential of private investments. We do this not only to earn higher returns for our clients, but also to diversify the portfolio and reduce its volatility.
Index
We invest in index funds and exchange-traded funds (ETFs) that cover a broader range of companies and countries and are diversified across geographies/sectors.
Active investment in public markets, especially in the world’s developed efficient markets, is less likely to pay off in the long term, so we select the least expensive and most broadly diversified index funds in the world and invest there regularly.
Index investing is an investment strategy that replicates the structure of a selected investment index. This type of investment allows you to reach thousands of companies around the world at the lowest possible cost, and to ensure long-term returns on your investment, particularly for recurring investments.
Plus
Part of the investment portfolio is allocated to private alternative markets.
Our experience and expertise allow us to successfully identify niche private markets and seize the opportunities they present. That’s why we are directing part of the investments – which could eventually reach up to 30% – to the private markets. This allows us to invest in unlisted companies, real estate and infrastructure and energy assets such as solar and wind farms.
Private alternative markets are an attractive investment area due to:
- Higher returns. Private markets are much less liquid than public markets (ability to cash out investments quickly and easily). This disadvantage, which is negligible in the context of long-term investments, is usually compensated by higher returns.
- More stable asset value growth. All index-tracking funds follow similar patterns in the public markets, so there is little difference in their dynamics. Meanwhile, the niche segments of the private alternative markets are influenced by other world events and factors, which helps to ensure more stable asset value growth.
Investing in companies in the Baltic region
As one of the region’s largest investment management teams, we know our home region and are able to identify and realise the ideas that have the highest potential for return. We regularly analyse Baltic equities, so we have a better sense of the pulse of the market while the Baltic equity markets go unnoticed on the horizon of the world’s major investors.
We actively invest in individual sovereign and corporate bonds
Bonds are considered a safe asset, but investing in bonds from developing countries or riskier corporate bonds can provide higher returns. By combining bonds with different levels of risk, we create a balanced portfolio of bonds and aim to improve risk and return objectives.
We invest a significant part of the bond portfolio directly in securities, which helps us to reduce costs and increase savings for the client.
On the bond side, we also invest in opportunities that are not available on public markets – alternative assets such as private debt.
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Deposits
Artea offers some of the highest interest rates among the banks in the country.
Bonds
We have issued the largest number of bond issues in Lithuania.
Investment funds
Managers in our team are professionals, including some of the best investment managers in the world (according to Citywire).
Advanced securities trading platform
Invest into shares in the Baltic States and worldwide.