Over the past month alone, pension fund managers set up deposits with a cumulated value of RON68 million, after a constant decline of amounts deposited in banks in the first three months of 2011.
“The value of bank deposits rose in May for the second consecutive month because pension funds have a rather cautious investment strategy. Only bank deposits and government notes increased their weight in the total assets compared with the previous month,” according to the latest monthly data released by private pension system regulator (CSSPP).
Against May 2010, the volume of deposits of private pension funds went up 3.6 times.
Bank deposits accounted for over 7% of the assets of mandatory pension funds at the end of last month, from 5.9% in April and 4.7% in March.
The relatively low share of deposits to total assets is explained by the fact that they are only a “safe haven” investment, with pension fund managers awaiting the right time to invest their money in other assets.
About 67% of total assets, or RON5.2 billion, is invested in state paper. (EUR1=RON4.2517)