Thus, the seven Pillar II funds currently are way above the annual inflation rate of 8.8% reported for September 2023 against the backdrop of an appreciation of shares at the Bucharest Stock Exchange, in which these funds invest the most, and amid a slowdown in the price hike pace in Romania. This represents an outstanding performance for the managers of the seven private pension funds. In 2022, the funds saw declines which were recovered from the very first months of 2023.
Romania’s annual inflation decreased to 8.8% in September 2023, after stagnating at 9.4% month-on-month in August 2023, data from the country’s statistics board INS showed on Thursday (October 12).
“Private pension funds will continue to report positive results and yield value for contributors. However, their performance must be analyzed in terms of an economic cycle. This performance is way superior to what the public pension system offers“, said Adrian Codirlasu, vice-president of CFA Romania association.
At individual level, the performance of the last 12 is as follows: 17.1% for Vital, 17.6% for Metropolitan Life Pensii Private, 17.7% for BCR Pensii, 17.8% for BRD Pensii, 18.3% for AZT Viitorul Tau, 18.3% for NN Pensii, 19.6% for Aripi. Ziarul Financiar (ZF) daily calculated this evolution based on the net asset value per unit published by Romania’s Financial Supervisory Authority (ASF).
Since the inception of the Pillar II pension system in Romania, in May 2008, the funds have generated an annual average yield of 7.6%, according to calculations by the Romanian association for private pensions APAPR. By comparison, the annual average inflation rate during this period was 4.4%.