In December 2021 alone, private pension funds’ assets climbed to RON89 billion from RON86 billion, that is an increase of RON3.1 billion, which is the biggest monthly advance in the history of Romania’s private pension system, in line with data collected by Ziarul Financiar daily. The evolution is backed mainly by a 7% increase in the main stock market index BET.
Against the backdrop of contributions from Romanian employees, an average RON800 million per month, and following an appreciation of quotations in the portfolio in 2021, especially Romanian stocks, Pillar II private pension funds saw their assets touching a record high, ZF data also show.
The bulk of investments (RON53 billion) targeted state treasuries (60% of the total) and the stocks-foreign stock markets segment, but mostly the Bucharest Stock Exchange, respectively 26%, namely, RON23 billion, a record high.
Individually, NN Pensii’s assets grew by RON1 billion in December to RON31 billion, being the largest Pillar II fund. Next comes AZT Viitorul Tau with RON19 billion in December (higher by RON600 million), Metropolitan Life Pensii Private with RON12.3 billion, Vital (RON8.9 billion), Aripi (RON8 billion), BCR Pensii (RON6 billion), BRD Pensii (RON3.5 billion).
The seven Pillar II private pension funds had a weighted average yield of 5.88% in 2021, which translates into a net RON4.5 billion for the country’s future pensioners, slightly above the RON4.4 billion (EUR900 million) generated in 2020, the Romanian association for private pensions APAPR said at mid-January.
Pillar II funds have generated an annual average yield of 8% since launch (May 2008) until present, earning RON21.7 billion (EUR4.4 billion) (net of all administration fees) for their contributors.