Between May 2008 and May 2014, Pillar II funds posted an average annual yield of 11.2%.
“The private pension funds currently invest approximately 95% of the money in Romania, as investments abroad only reach 5%. Two thirds of the portfolios are state bonds, nearly 16% are listed stocks, and the rest are other bonds, bank deposits, mutual funds and others,” APAPR release reads.
Over RON2 billion of the funds’ RON15.45 billion net assets are directly invested in 35 Romanian companies listed on Bucharest Stock Exchange, thus Pillar II funds cover around 10% of the average daily liquidity.
At the end of 2013, the main holdings of Pillar II funds were in Fondul Proprietatea – RON294.6 million, Petrom – RON265.6 million, Romgaz – RON258.7 million, Banca Transilvania – RON200.5 million and Transgaz – RON129.8 million, followed by BRD, SIF5, SIF2, SIF1 and Nuclearelectrica.
The funds mainly invested in the financial, energy, utilities, and pharmaceutical sectors. The first contributions to Pillar II funds were made in May 2008.