“The market is crashing and we do not know when it will stop,” said Generali Fond de Pensii’s Risk Manager, Dan Bajenaru.
The fund used the first payments from subscribers in May to acquire listed company shares, ranking first among pension funds in terms of share ratio in its portfolio. However, funds received at second payment, on June 20, were not invested in shares, part of which were sold and moved to bank deposits. Its share ratio thus dropped to 8.43 percent, from 23.36 percent.
Generali, the third-largest Pillar II fund, is not the only one to avoid the stock market, which yielded losses for 10 of the 14 funds operating on the mandatory pension market. Allianz-Tiriac, the second-largest Pillar II fund, also lowered the share ratio in its portfolio to 9 percent, from a previous 20 percent.
The average share ratio for all mandatory pension funds dropped to 6.13 percent, from 9.53 percent.
BCR Administrare Fond de Pensii has the highest exposure on shares, at 19.42 percent.
