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September 25, 2022

Pension funds’ yield, double the inflation rate since launch

Compulsory (Pylon II) and optional (Pylon III) private pension funds reported at the end of 2011 net assets of RON 6.852bln, rising by 3.37 pc from November figures and by 47 pc compared to the same interval of 2010, according to Wall-Street.ro estimates, based on figures supplied by the Private Pensions System Supervisory Commission (CSSPP).

Divided by categories, compulsory private pension funds reported at the end of December 2011 net assets of RON 6.416bln, coming from 5,516,024 contributors, while optional pension funds managed net assets of RON 436 M. The number of contributors to optional funds amounted, in December 2011, to 260,379 people.

As far as Pylon II is concerned, the fund boasting the highest assets’ level remains ING, with RON 2.458bln. This is followed by AZT Viitorul Tau, managed by Allianz-Tiriac, with net assets of RON 1.506bln, and the Aripi fund, managed by Generali, with net assets of RON 520 M. As for optional pension funds, ING Optim claims the top position based on total assets (RON 147 M), followed by BCR Plus (RON 74.7 M) and AZT Moderato (RON 66.5 M).

At the same time, the Pylon II had since its launch in May 2008 an average annual yield of 11.7 pc, that is, double the annual inflation rate of 5.7 pc for this interval, according to figures supplied by the Romanian Private Pension Funds’ Association (APAPR), quoted by realitatea.net. Thus, private pension funds, managing assets of nearly EUR 1.5bln for 5.5 million participants, reported in the past three and a half years earnings of RON 730 M (EUR 170 M, at the present rate).

APAPR representatives argue that last year’s stock market slump, which seriously affected the funds’ yields, also afforded them an opportunity as it allowed them to purchase stocks at lower prices, which will bring the funds a profit once the stock markets recover.

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