Romania's mandatory pension funds under private management hit EUR 10 bln assets

The assets managed privately under the 2nd pillar of the pension system in Romania increased to RON 47.6 billion (some EUR 10 billion) at the end of last year, 19.4% more than at the end of 2017. Nearly two-thirds (63.8%) of the total assets were invested in government debt, while shares accounted for only 17.4% of the funds’ aggregated portfolio, local Economica.net reported. The managers held 8.2% of the assets in bank deposits. The Government amended significantly the legislation for the 2nd pillar of the pension system, that is likely to be dismantled if the provisions included by the emergency ordinance 114/2018 are passed by the Parliament. Those already contributing to the system can choose to pull out after a minimum contribution period of five years. Their money will be managed in the future by the same private managers. But the management fee will be cut from 2.5% to 1%. Furthermore, no other contributors will be enrolled in the system. Romanian Government is bringing final touch to private pension system reform editor@romania-insider.com (photo source: Shutterstock)