Assets of Romanian mandatory pension funds up 21.4% at end-April

The assets of the mandatory private pension funds in Romania increased by 21.4% year-on-year to RON 52.27 billion (nearly EUR 11 bln) at the end of April while the net assets value was marginally smaller (RON 52.25 bln), according to data from the Financial Supervisory Authority (ASF).

The increase in pension funds’ assets is driven, in principle, by the new contributions paid by the employees to the funds and the yield on existing investments.

The fund managers placed the largest share of the assets in government securities: RON 30.06 billion or 57.52% of their entire portfolios. The share of the equity in their portfolio accounted for 19.07% of the total (RON 9.96 billion). The fund managers also held a significant share of their assets in bank deposits: 9.10% of the total (or RON 4.75 bln).

The number of participants in the mandatory private pension funds reached 7.322 million, but only 7.192 million participants had money in their accounts while for the others no contributions have been paid.

In February 2019, contributions were paid for 3.891 million participants, while no contributions were paid for 3.407 million.

(Photo source: Adobe Stock)