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September 18, 2020

Private pension funds improved yields in 2009

The mandatory private pension funds (Pillar II) registered a medium yield of 17.7 per cent in 2009, against 11.5 per cent in 2008, while the optional pension funds (Pillar III) posted an average yield of 15.9 per cent, from 2.7 per cent in 2008, according to a press release by the Romanian Private Pension Funds Association (APAPR).

During 2009, state bonds generated yields of 10-11 per cent, and the estimated inflation for late 2009 stands at 4-5 per cent. On Pillar II, the funds generated yields of between 10.2 per cent and 19.4 per cent, and 7.6 per cent to 23.2 per cent on Pillar III respectively. The yields differed according to the risk profile assumed by each fund and the investment structure of the portfolio. The top three best-performing funds are managed by ING, Prima Pensie and Generali, according to APAPR data. At 10.15 per cent, OTP was the lowest-yield fund.

‘Investment results in 2009 show pension fund managing companies succeeded in achieving a frail balance between performance and safety,’ APAPR President Crinu Andanut said.

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