Lithuanians still cautious with own funds

  • 2005-08-17
  • From wire reports
VILNIUS - Even though investments are up one-fifth in the first half of 2005, private Lithuanian investors continue to maintain a cautious approach as to where to place their money, recent data shows.

"The majority of investors tend to keep their money in conservative funds. Those who search for alternatives mostly choose the [investment] funds with higher risk levels," said Julita Varanauskiene, an adviser to SEB Vilniaus Bankas president and household finance expert.

According to six-month data of SEB Vilniaus Bankas, conservative investments comprised 59 percent of total investments by second-pillar pension funds. For third-pillar funds and life insurers the ratios were 67 percent and 89 percent, respectively.

Time deposits comprised 37.3 percent of total investments by private investors, while demand deposits and securities, including corporate shares and bonds, accounted for 30.4 percent and 26.4 percent of the total figure, respectively, the bank reported.

In July, investment funds managed some 140 million litas (40.58 million euros) of private investors' funds, Varanauskiene said, citing preliminary estimates. In July 2004 the respective assets under fund management comprised 33 million litas.

In the first half of 2005 financial assets of Lithuania's residents rose by 19 percent, or 2.2 billion litas, year-on-year.