Romania’s pension funds boast 9%-10.5% gains in January-August

The value of the units at the seven Pillar II pension funds in Romania increased by between 9% (Vital) and 10.5% (Aripi) during the first seven months of 2023, according to Bursa.ro.

This comes after all seven funds lost ground during 2022 (-0.4% to -4.7%), and the inflation reached 21% over the 19-month period (January 2022 to July 2023).

Adrian Codirlaşu, vice-president of CFA Romania, draws attention to the large exposure of the Pillar II pension funds to state securities, whose yield over more extended periods of time, he argues, is lower than inflation.

The seven pension funds have exposures of between 55% and 69% of their portfolios to state securities, with an average of 63%. Comparatively, their exposure to equity is three times smaller (21% on average).

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