The Romanian association for private pensions APAPR warns that 2023 too could be a harsh year for the seven companies that manage the private retirement savings of 8 million Romanian employees.
For the seven private pension fund managers – NN Pensii, Allianz Tiriac Pensii Private, Metropolitan Life Pensii Private, Aegon, Generali, BCR Pensii, BRD Pensii –2022 was extremely difficult considering that it was the first year in which Pillar II funds saw a decline in yields and their financial results were lower than in 2021.
In 2022, for the first time since their launch in 2008 onward, Pillar II pension funds ended in the red, being a year marred by soaring prices, turmoil on the capital market and the start of the war in Ukraine.
2022 is the first year which Pillar II private pension funds in Romania ended in the red, with an average weighted decline of 3.75%, due mostly to a decrease in the value of state bond portfolio, where the funds hold almost 65% of the assets.
The latest data of March 2023 provided by Romania’s financial market regulator ASF show assets worth roughly RON103 billion for all the seven Pillar II funds versus RON96 billion in December 2022.