Average contribution to mandatory pension funds grows, state titles remain preferred investments

The average contribution to mandatory private pensions for each contributor went up 22 percent in June compared to the same month of last year, according to the Private Pensions Surveillance Commission. The actual value was of RON 40.5 for each contributor (which is EUR 9.4). This amount was the contribution for the salary on April 2010. The contribution quota increased from 2 to 2.5 percent in the first quarter of this year. Overall, the private pensions system saw an increase of 18.7 percent in the first half of the year, some EUR 176 million in total, compared to the second half of last year. There were 5 million contributors to the mandatory private pensions system at the end of June this year. The total value of net assets managed by private pensions funds in Romania was of around EUR 774 million, up 41.7 percent in the first six months of the year. The private pension funds in Romania mainly invest in fixed revenue assets, such as state titles and bonds issued by foreign non-governmental institutions. State titles made 65 percent of the assets in June this year. Also, local assets were preferred, with only 15.4 percent of the fund's assets being covered by financial instruments issued by foreign companies or governments. 13 private pensions funds are sharing the Romanian market, administrated by 10 fund managers.