DDOR Garant to manage Societe pension funds


DDOR Garant is going to take over the management of pension funds Societe Generale Štednja and Societe Generale Ekvilibrio, as reported today by the shareholders of these funds.

The explanation is that the above decision was made in the best interest of members of these funds, considering the fact that DDOR Garant has a bigger market share and manages more assets.

In the five years of its existence, Voluntary Pension Fund Management Company Societe Generale, with its 2% market share, concluded over 15,000 membership agreements and it manages assets in excess of RSD 420 million.

Voluntary Pension Fund Management Company DDOR Garant was founded seven years ago. To this day, it has concluded approximately 70,000 agreements and manages assets in excess of RSD 3.2 billion.

The National Bank of Serbia gave the initial approval to the Contract on transfer of management rights between Societe Generale Penzije and DDOR Garant.

The shareholders of Societe Generale Penzije are the bank Societe Generale Srbija and Sogecap Insurance from France.

At the moment, there are five active companies managing assets of 12 voluntary pension funds in Serbia.

*Source: Beta

Interview: Miloš Skrbić, CEO of DDOR Garant

1. How do you see the takeover of the funds of Societe Generale Štednja and Societe Generale Ekvilibrio by DDOR GARANT?

By taking over the funds of Societe Generale, DDOR Garant increased its market share, as measured by net assets and number of members. Furthermore, we have concluded a Brokerage Sales Agreement with Societe Generale bank, and we expect that this type of cooperation will also bring us additional increase on the market.At the moment the Company manages four pension funds. By the end of 2013 we will have effected two mergers of funds. SOCIETE GENERALE ŠTEDNJA Fund will merge with DDOR GARANT DINAR Fund into a new fund DDOR GARANT ŠTEDNJA. DDOR GARANT Fund will merge with SOCIETE GENERALE EKVILIBRIO Fund into a new fund, DDOR GARANT EKVILIBRIO. With these two funds, depending on members’ propensity towards risk, we will provide them with appropriate diversification of investments.

Miloš Skrbić, CEO of DDOR Garant

Miloš Skrbić, CEO of DDOR Garant

2. What business results do you expect in 2014: for your company and for the domain of pension funds in general?

DDOR GARANT has big plans. We are sure that in the course of 2014 we will have successfully realized the vision of becoming the Company with the largest number of members in the Republic of Serbia and leader in the industry. We will continue to generate revenues that are among the highest on the market for our members, profit through dividends for our shareholders. In 2014 we expect a lot from our licensed DDOR insurance agents and brokers Societe General Bank and Szber bank. Furthermore, we expect significant growth through joint appearance on the market with both DDOR insurance and brokerage banks.

3.What are your expectations for 2014 regarding savings and economy in general?

Trends in global economic parameters, such as inflation, foreign exchange rates, interest rates and unemployment will continue to have a decisive influence on development of the industry of voluntary pension funds in Serbia.Our operations so far and development of the industry of voluntary pension funds in Serbia have not corresponded to expectations and plans of the founders of companies managing those funds. Stagnation in the number of active members and relatively low growth of net assets of voluntary pension funds is a direct consequence of deep economic crisis that affects the increase of unemployment rate, which in turn decreases purchasing power of members of voluntary pension funds. However, even in these crisis years DDOR GARANT survived and was the only one to record increase in the number of clients. We expect that trend to continue in the future.

4. What are the advantages of pension funds?

As institutions of private pension insurance, voluntary pension funds are an opportunity for everyone: the unemployed, students, those without a day of service, and for all employees who wish to additionally improve income in their old age. The decision to effect payment aimed at securing private pension is a decision on long-term investment of one’s assets in order to realize one more pension for oneself, or for one’s heirs (children, grandchildren) in the form of a long-term “old age savings”.You can make payments to voluntary pension fund whenever you can; there is no obligation of regular, periodic payments, as is the case with similar types of insurance. If you miss a payment or stop paying, your membership agreement will not be terminated, nor will that member have any further obligations. The funds that had already been paid will remain on the account of that member, with corresponding returns, until legal conditions are met for their withdrawal. The minimum amount for a single payment is RSD 500.00.A member of the fund may choose the manner in which they will pay pension contribution: standing order, administrative order, electronically or phone order, personal payment in a bank or postal office, etc. Furthermore, the paid pension contributions can be transferred from another pension fund into our voluntary pension fund. In case of death of a member of voluntary pension fund, the assets on their account will be transferred to the person appointed by that member under the membership agreement, and if that person is not appointed, further procedure will be carried out in accordance with provisions of the Inheritance Act.

5. What will be your major asset for the next year?

In 2014 DDOR GARANT will manage two funds. By investing the assets of these funds, and diversifying investments in the funds and between funds we will ensure maximum revenues for our members, with an acceptable risk level. Through the cooperation with DDOR insurance and Societe Generale bank, and our resources, we expect a significant increase in the number of members and an increase in net asset in 2014. Quality investments; continuous motivation and education of people in Serbia regarding the advantages of voluntary pensions; and joint appearance on the market will lead us to what we want to be – the most trusted Company of all.