It is the first decline since February, ending a consecutive series of increases that brought record highs for Pillar II pension funds. In Sept 2021, the assets of Pillar II private pension funds touched an all-time high of RON87 billion.
Despite higher money transfers, of RON841 million in October 2021 versus RON791 million in Sept 2021, the assets of private pension funds decreased due mostly to higher-than-expected increase in the inflation rate which put pressure on the increase in interest rates and implicitly on the returns of state bonds.
In October 2021, the bulk of investments (RON52.7 billion) targeted state treasuries (60.6% of the total), as compared with RON53.3 billion or 61.2% of the total reported in September 2021. Also, in October, RON1.8 billion targeted bank deposits, as compared with RON2.2 billion a month ago.