According to data published by the Romanian Association of Pension Funds (APAPR), Pillar II pension funds posted an average yield of 15.53 percent (weighted with their market share in terms of net assets) between August 2008 and August 2009, triple the inflation rate in this period.
The yield obtained by mandatory private pension funds in the past year exceeded those of all financial fixed-income instruments, in which they invested 90-95 percent of their assets, considering that the rest of the portfolio was placed in variable-income shares. For example, the average return of state shares issued between August 2008 and August 2009 was 11.69 percent, making private pensions much more profitable.
“The yields obtained on Pillar II recommend the return, even as of 2010, to the initial contribution schedule, namely three percent, not 2.5 percent of the gross salary of participants. Through these results, obtained in the most difficult year of crisis, the private pension industry has proved that it efficiently manages the savings of participants. Moreover, what is the use of these 10-15 percent returns, if we place these on annual contributions of RON 400-500 [some €94-118], the way they are now in Pillar II?” said APAPR’s President, Crinu Andanut.
At the end of August, the 12 funds on Pillar II collected total contributions worth RON 1.7 billion (€408.8 million), while their net assets were worth RON 1.85 bln (€440.5 mln). Thus, the net profit made by Pillar II funds amounts to RON 133 mln (€31.7 mln).
