Capitalization of Romania's mandatory privately managed pension system 22% up y/y

The portfolios accumulated under the mandatory privately-managed pension system (second pillar) increased to RON 47 bln (EUR 10.1 bln) at the end of October, 22% more than last year, according to data announced by the Financial Supervisory Authority (ASF), quoted by Ziarul Financiar. The number of participants to the system increased to 7.19 million in October, from 7.17 million in September. Accordingly, the average assets per contributor reached RON 6,500 (EUR 1,400). However, the employees made actual payments on the behalf of only 4.06 million contributors out of the 7.17 million contributors reported as of August. As regards the breakdown of the assets in the portfolio of fund managers, the largest share is held by government securities (62%), followed by equity (19%) and bank deposits (8%). Instruments holding significant shares in the portfolios are the bonds (corporate and municipal) and mutual funds. The weighted average return on all private pension funds for the last 24 months was 3.48%. Half a million Romanians, unaware they have private pensions editor@romania-insider.com