Biggest pension fund manager in Romania cuts management fee

NN Pensii, the biggest private pension fund manager in Romania, has decided to reduce by a third its management fee applied to all the contributions that enter the fund. The new fee is 1.7% of the contribution value, down from 2.5%, which is the maximum management fee allowed by law for mandatory private pension funds, local Profit.ro reported. Thus, from a contribution of RON 100 paid on behalf of a client, NN Pensii will only take RON 1.7 compared to RON 2.5 until recently. The remaining sum is converted into fund units. The decision to cut this fee will reduce the manager’s revenues by some 15%, according to Profit.ro estimates. Besides the management fee, NN Pensii also charges a monthly fee of 0.05% of the pension fund’s total assets. The mandatory private pension fund managed by NN Pensii has assets of almost RON 15.4 billion (EUR 3.31 billion). Romanian state readies private pension transfer to state system editor@romania-insider.com