Bank deposits are preferred Pillar III instrument in 2007

“For now, we not believe it is necessary to introduce new investment instruments, as we still have insufficient money to use existing ones. Perhaps next year such a measure will become necessary,” according to a statement for Business Standard by the General Manager for Allianz-Tiriac Pensii Private, Crinu Andanut. The Allianz-Tiriac Pensii Private was leader at the end of 2007 on the optional pension fund market, based on the number of subscribers, with its two funds, AZT Moderato and AZT Vivace reporting 23,611 clients. The second-most preferred instrument of optional pension funds is state bonds, which claim a 21 percent share in the structure of Pillar III investments, followed by shares of collective securities placement bodies (7 percent). Shares, corporate bonds and newly-issued securities are instruments used to a lesser degree.

As concerns the evolution of the number of subscribers, the initial private mandatory pension campaign seems to have driven subscriptions for Pillar III. “We sold optional pensions alongside mandatory pensions, as these are complementary products. Any informed individual knows that Pillar II is insufficient, and will also sign up for an optional pension contract,” added Andanut.

Six administrators are active on the Pillar III market: ING Asigurari de Viata, Aviva Asigurari de Viata, BCR Asigurari de Viata, Allianz-Tiriac Pensii Private, OTP Garancia Asigurari, and SAI Raiffeisen Asset Management.