Pension funds record lower yields in Romania

Mandatory private pension funds posted an average yield of 1.8% in Romania in the first semester, almost three times lower compared to the average yield recorded in the same period last year. The seven mandatory private pension funds saw yields ranging between a maximum of 2.8% and a minimum of 1.4%. The fund Aripi, which is managed by insurance company Generali Romania, recorded a yield of 2.8%, whereas the local funds ING, Alico and AZT Viitorul Tau posted yields of 1.4%, reports local Ziarul Financiar. The results are poorer compared to last year. In the first semester of 2014, the best performing fund had a yield of 6.2% (Aegon Vital), whereas the lowest yield amounted to 4% (Alico). The average yield between January and June 2014 was 6.2%. The weaker results were mainly driven by lower yields on state bonds, in which private pension funds invest the bulk of their assets. editor@romania-insider.com