Private pensions industry’s losses up to €18 mln in H1

For the first half of 2008, the 14 fund administrators currently on the market posted losses totaling €16.1 million.

On the optional pension market (Pillar III), seven of the eight fund administrators posted total losses worth €1.96 million, according to a report by the Private Pension System Supervisory Commission (CSSPP).

The value of assets invested abroad by private pension fund administrators amounted to 16.3 percent of total assets registered in the industry at the end of September. Some 17 percent of investments by Pillar II funds were in EU states, €22.6 million of the total €133 million net assets in the system, according to CSSPP data.

Pillar III funds invested only 10 percent of their assets abroad – at €1.6 million of the total €16 mln.

Specialists do not expect profits in the private pension system before 8-10 years, once administrators manage to cover losses generated by entering this market.