In fulfillment of legal obligations from Law No. 56/2020 “On Collective Investment Undertakings” and by-laws issued pursuant to it, the management company Credins Invest sh.a., has updated the Key Investor Information Document and “Credins Premium” Investment Fund Prospectus.
Updates of the “Key Investor Information Document” (KIID):
Updates of the “Credins Premium” Investment Fund Prospectus:
You can read the Key Investor Information Document and the Fund Prospectus published on our official website: www.credinsinvest.com.
Thank you,
Credins Invest
February 2024
A new legal development provides a breath of fresh air at a time when many of you are consumed with concerns about your financial future. Since passing in 2009, the current legislation pertaining to private pension funds has not kept up with the demands of a dynamic market. However, on November 6, 2023, a new incentive was introduced in the form of Law No. 76, which was ratified on September 21 of the same year by the Albanian Parliament.
This law is specifically intended to solve the difficulties that have been faced thus far. The new law is a significant departure from the previous one, allowing for further harmonization and alignment of legislation with European directives. It also aims to encourage employers and individuals alike to view private pension funds as the most advantageous way to supplement the public pension system.
It is safe to say that the recently passed legislation responds to the years-long requests from the fund’s management companies and members for an assessment and enhancement of the legal framework.
In this piece, we will examine the specifics of this law and the financial incentives that come with it, utilizing the help of Credins Invest’s experts. They define what the changes entail for every person in straightforward, understandable language. They also underline how private pension plans directly benefit both current and prospective members.
Experts claim that the new law provides financial advantages due to the facilities implemented, the raised service standards, the administration of funds by the fund management companies , and the fund’s increased guarantees.
But what is it about precisely? Let us concentrate on all the enhancements that the recently passed legislation offers to private pension funds.
1. Doubling up allowable deductible contributions:
From a set value of 200,000–250,000 Lek, depending on age (under 50 – over 50, respectively), which had been unaltered since 2009, the maximum annual deductible limit for the effect of personal income tax has been raised to the minimum annual wage of 480,000 Lek. Employers who make contributions to their employees’ private pensions, deductible income taxes, are subject to the same cap, which is the minimum yearly wage of each employee (480,000 Lek). You can now save more for retirement while paying less income tax on your contributions.
2. Fiscal benefit in the form of direct money and discipline in periodic withdrawals:
As opposed to the previous law, you will only be taxed on the income from your investment interest if you decide to retire, even if it is five years ahead of schedule. The sole requirement for this is that you withdraw money every month—not the full investment amount all at once—for at least two years.
3. Setting up a closed pension fund and customization of the employee pension plan:
Do you work as an employer or are you a member of an organization or trade union that represents employers? In addition to open participation pension funds (as per the previous law), closed pension funds can now be established. It includes the involvement of workers or patrons of your business, along with terms and components that you choose, including the management charge, investment policy, vesting period, etc.
4. Transparency and detailed information for fund members:
The management firms will provide you with transparent information regarding your contributions. In particular, you will receive balance evidence of your account once a year; you will also have access to your account at any time to monitor any potential financial movements, as well as the fund prospectus, interim and annual reports, and audited financial statements.
5. More investing opportunities:
The new law provides you with a wider array of financial tools to invest pension fund assets, diversify your holdings, and guarantee a suitable rate of return.
6. Favoring employers in their pension scheme for employees:
Under the new law, an employee must now stay faithful to their employer for five years to get benefits from contributions, as opposed to the previous requirement of two years. This point benefits you in your pension plan if you’re an employer and are reading this post.
7. Shorter benefit payment terms and reduced administration costs:
Compared to the prior law, a reduced maximum administration charge of 2.5% has been established instead of 3% annually on the net worth of assets. In addition, the pension benefit’s 30-day payment conditions have been reduced to 15 days.
8. Possibility of good cross-border marketing opportunities after Albania joins the EU:
The new law will allow for broader promotion of pension funds through agents by regulating promotional activity.
The above-explained facts make it clear that the new law regarding private pension funds provides greater stability and security for those of you who have already taken the initiative to start planning your retirement or who wish to do so. Even though the experts at Credins Invest offer thorough advice with integrity and responsibility, it is crucial that you, as an employee and employer, make informed decisions regarding your financial future.
Credins Invest has published the summary annual report which presents the performance of the funds throughout (more…)
In fulfillment of legal obligations from Law No. 56/2020 “On Collective Investment Undertakings” and by-laws issued pursuant to it, the management company Credins Invest sh.a., has updated the Prospectus of the “Credins Premium” Investment Fund.
The Prospectus has been updated as follows:
“The graph below presents the historical net returns of the “Credins Premium” Fund during the full years of activity. The net annual rate represents the portfolio’s rate of return after deducting costs and fees incurred by the fund. The fund started its activity on July 1, 2016. On 31.12.2022, the average modified duration of the investment portfolio (Modified Duration) is 0.06 years.”
“The fund will consist only of debt securities with fixed income” has been removed.
“In special circumstances, the repayment of quotas can be made in titles that the Fund owns, when it is possible to determine the exact price and the investor agrees with the proposal. The repayment of quotas will be made in kind, that is, in titles, for repayments with a large value and will be carried out in special circumstances that are deemed such by the Company.
As for the process of determining the minimum value of net assets per member, which will be considered to be settled in securities, this will be evaluated case by case depending on the net value of the member, considering the number of investors who have higher investment balances in the Fund.
Repayment of investors through securities is carried out for securities that the Fund aims to disinvest.
The proposal to the investor for the specific titles will be in accordance with the objectives and policies of the Fund, the Credins Premium Investment Fund, in the best interest of the investors who remain in the Fund and fulfill the investment objectives of the withdrawing investor.
Investors must agree to the terms and sign a securities custody agreement with one of the banks in order to transfer the securities from the Fund to the investor’s securities account. The investor is primarily paid in title and part of the payment is in cash, deducting the tax liability.
If the investor intends to redeem for the entire value, the withdrawal must be carried out with all quotas, without leaving quotas in number less than 1 (one). In case there will be balances in quotas less than 1 (one), the Company in a period not less than once a year, will request to close the account and transfer of these values to other income for the Fund.”
“Every payment for the investment fund is made in monetary assets and, only in special circumstances, provided by an AMF regulation, in securities or other assets, when it is possible to determine their exact price.
Redemption of quotas, using fund assets, or redemption by transfer of a corresponding percentage of any type of fund assets with a value equal to the value of the quotas to be redeemed in this way, is allowed in cases where the sale of the fund’s assets, necessary to meet the requirements for redemption in large values, may compromise the position of permanent investors in the fund, provided that its prospectus describes the method of redemption of quotas in this form. Redemption with assets can only be done by transferring that part of each type of fund assets, which is proportional to the number of investors’ quotas, which require redemption and the total value of the fund’s assets.”
You can read the full prospectus electronically on our official website: www.credinsinvest.com.
Thank you for your cooperation,
Credins Invest
April 2023
In fulfillment of legal obligations deriving from law no. 10197, dated 10.12.2009 “On Voluntary Pension Funds”, as well as the bylaws issued under its implementation, the management company “Credins Invest”, has updated the Prospectus of the Pension Fund “Credins Pension”, approved by the Financial Supervision Authority with decision no. 65, dated 31.03.2023.
In the prospectus have been approved the following updates:
The full prospectus of the Credins Pension Fund is published on our official website www.credinsinvest.com.
Thank you,
Credins Invest
April 2023
In fulfillment of legal obligations arising from Law No. 56/2020 “On Collective Investment Enterprises” and by-laws issued in its implementation, Credins Invest sh.a. – Funds Management Company, has updated the Key Investor Information Document (KIID), for Credins Premium Investment Fund.
Fund indicators for 2022 have been updated in the Key Investor Information Document. You can read it electronically on our official website in the Documentation section, Credins Premium Investment Fund.
Thank you for your cooperation,
Credins Invest sh.a.
Date 22.02.2023
Credins Invest sh.a. has published the Monthly Reports, January 2023 regarding the performance of the investment fund “Credins Premium” and pension fund “Credins Pension”.
Investment fund clients should read the section reflected on the third page of the Report, regarding the forecasts for the decrease of inflation during 2023, and asset allocation process by the Management Company.
“Investment Fund’s investors are encouraged to be patient, not to make disinvestments influenced by unfavorable market conditions and to have an approach oriented towards the long-term value of their investments.”
The Credins Pension Fund has not been affected by the increased and continuous volatility of the government bonds’ interest rates during the year 2022. Since the pension fund has a long-term horizon, the assets of the fund are mostly held-to-maturity, so the price of the quote has not experienced considerable volatility.
For more detailed information, we recommend you to read:
Credins Premium Monthly Report, January 2023
Credins Pension Monthly Report, January 2023
Credins Invest sh.a. has published the Monthly Reports, December 2022 regarding the performance of the investment fund “Credins Premium” and pension fund “Credins Pension”.
Investment fund clients should read the sessions “Auctions of government securities and interest rate” and “Annual historical net returns”, reflected on the second and third page of the Report, regarding the increase of interest rate during 2022, trend of securities’ interest rates, volatility of the fund, forecasts for the duration of inflation and asset allocation.
“Investment Fund’s investors are encouraged to be patient, not to make disinvestments influenced by unfavorable market conditions and to have an approach oriented towards the long-term value of their investments.”
The Credins Pension Fund has not been affected by the increased and continuous volatility of the government bonds’ interest rates during the year 2022. Since the pension fund has a long-term horizon, the assets of the fund are mostly held-to-maturity, so the price of the quote has not experienced considerable volatility.
For more detailed information, we recommend you to read:
Credins Premium Monthly Report, December 2022
Credins Pension Monthly Report, December 2022
Credins Invest sh.a. has published on the official website the Monthly Reports, November 2022 regarding the performance of the investment fund “Credins Premium” and pension fund “Credins Pension”.
Investment fund clients should read the additional and detailed information regarding the increase of interest rate, volatility of the fund, forecasts for the duration of inflation and asset allocation, reflected on the third page of the Report.
“Investment Fund’s investors are encouraged to be patient, not to make disinvestments influenced by unfavorable market conditions and to have an approach oriented towards the long-term value of their investments.”
The Credins Pension Fund has not been affected by the increased and continuous volatility of the government bonds’ interest rates during the year 2022. Since the pension fund has a long-term horizon, the assets of the fund are mostly held-to-maturity, so the price of the quote has not experienced considerable volatility.
For more detailed information, we recommend you to read:
Credins Premium Monthly Report, November 2022
Credins Pension Monthly Report, November 2022
Credins Invest sh.a. has published on the official website the Monthly Reports, October 2022 regarding the performance of the investment fund “Credins Premium” and pension fund “Credins Pension”.
Investment fund clients should read the additional and detailed information regarding the increase of interest rate, volatility of the fund, forecasts for the duration of inflation and asset allocation, reflected on the third page of the Report.
“Investment Fund’s investors are encouraged to be patient, not to make disinvestments influenced by unfavorable market conditions and to have an approach oriented towards the long-term value of their investments.”
The Credins Pension Fund has not been affected by the increased and continuous volatility of the government bonds’ interest rates during the year 2022. Since the pension fund has a long-term horizon, the assets of the fund are mostly held-to-maturity, so the price of the quote has not experienced considerable volatility.
For more detailed information, we recommend you to read: