The returns helped assets grow by 20.6% to €2.9bn, of which €2.4bn came from contributions, and €484m from net investment growth.Funds cut their average weighting to domestic assets from 43% to 30%. Allocations to eastern European assets grew by 3 percentage points to 24%, and by a similar amount in western European assets, to 16%.The funds also increased their exposure to North America, from 5% to 9%.The active funds capitalised on the stock market bull run, increasing their equity exposure from 26% to 32%. Bond allocation rose from 48% to 56%.The shifts came at the expense of term deposits, because of historically low interest rates, and cash holdings.The balanced funds maintained their equity exposure at 17%, raised their bond allocation from 70% to 74%, and likewise lowered their deposit and cash investments, while the conservative funds’ bond allocation rose by 7 percentage points to 84%.Returns from the 17 private, third-pillar funds showed a similar trend, with the average gain reaching 5.76%, compared with a loss of 3.27% the year before.The highest returns were generated by the nine euro- and two dollar-denominated active funds, with average gains of 9.03% and 6.26% respectively.The third-pillar sector remains underdeveloped, with some 275,770 participants, of whom only 55,855 – 6% of the employed workforce – benefit from employer contributions. Latvia’s mandatory second-pillar funds generated a 12-month weighted average return of 3.83% in March, according to the Association of Commercial Banks of Latvia (LKA).A year earlier, all three classes of funds lost money, with the riskier plans suffering the most. In the most recent 12-month period, investments in riskier assets yielded the best results.This March the average return from the eight active, equity-weighted funds strengthened from to 5.17%, compared with a loss of 4.05% a year earlier.The four balanced funds gained 3.28% on average, compared to a loss of 3.17% in the previous year. The eight conservative funds edged up their average return from -0.64% last year to 0.72%.