Smaller pension funds awaiting shareholder decisions

Zepter, MKB, AG2R, and Marfin are the smallest pension funds with 1,558, 1,759, 1,041, and 198 subscribers, respectively.

“Nothing has yet been decided, all options are still open, specifically to continue as before. However, we do not exclude the option of mergers, but we must see what the market has to offer,” according to a declaration for Business Standard by MKB Romexterra Fond de Pensii General Manager, Jiru Enache.

Zepter Fond de Pensii and Marfin are both awaiting decisions by their shareholders.

In other countries which have implemented the multi-pillar system, only 60 percent of funds survived, according to a declaration by CSSPP General Manager, Dan Pescaru, quoted by NewsIn.

Funds with less than 50,000 participants, the minimum set by law based on the entry of an annual 150,000 persons into the work force, do not last more than two years if they are unable to raise the number of subscribers.

A further 18 pension funds are activating on the mandatory private pension market. The top 11 funds control 98.7 percent of the market, with the remainder shared by 7 smaller funds. Following the initial subscription campaign the top three funds were ING Fond de Pensii, with a 32.07 percent market share, Allianz-Tirac Fond de Pensii, with 25.51 percent, and Generali Fond de Pensii, with 10.03 percent.