INDEXO is transferring approximately €1.5 billion in assets under management to INDEXO Bank as part of a plan to streamline its operations and reduce costs. The change, expected to be completed by the conclude of June 2026, will witness the custodian bank functions for investment plans move from Swedbank to INDEXO Bank, which has received authorization from the Bank of Latvia to provide custodian banking services and hold financial instruments.
The move underscores a growing trend among financial institutions to internalize key functions to improve efficiency and control costs. Custodian banks are responsible for safeguarding investment plan funds and financial instruments, ensuring they are held separately from the bank’s other assets and that fund management complies with regulations.
“Custodian bank services are an essential, yet often unseen, part of investment management. These services are comparatively expensive in Latvia, and we see an opportunity to change that. By transferring the custodian bank function to INDEXO Bank, we not only strengthen the group’s internal efficiency but also create a foundation for the development of a more competitive custodian bank service in Latvia,” said Artūrs Roze, Board Member and Pension Fund Manager at IPAS INDEXO.
INDEXO anticipates the in-house custodian bank operations will generate an additional €0.7–0.8 million in annual revenue, allowing for continued investment in technology, processes, and service quality. The company also plans to expand its custodian bank service offerings to other institutional clients, providing a secure, transparent, and competitive solution for holding financial instruments.
The transition is not expected to impact IPAS INDEXO clients’ investment strategies, accumulated savings, or day-to-day communication. All investments will remain fully protected and accessible in accordance with regulatory requirements. INDEXO is a financial services group that includes pension management companies IPAS INDEXO, AS INDEXO Atklātais Pensiju Fonds, IPAS VAIRO, as well as INDEXO Bank and AS DelfinGroup.
