The average value of the units in the mandatory private pension funds (Pillar II) in Romania, an index that shows whether the money placed by contributors are generating profits or not, decreased 6.7% during the first three months of this year, according to a statement of the Association for Private Administered Pensions in Romania (APAPR).
However, the loss will be recovered and the average growth rates calculated over longer periods of time remain positive and robust, APAPR said, local Profit.ro reported.
“During the first three months of this year, this decline is on average 6.7% for mandatory private pension funds (Pillar II) in Romania. The evolution is mainly due to the decreases registered by the global financial markets. The Bucharest Stock Exchange (BVB) fell by 24% for the period, the markets in the UK and Germany by 25%, and the French market by 26%,” the statement reads.
The organisation, however, reminds that the dynamics remain positive over a relevant time horizon, with average returns of 1.3% in the past year (March 2019 to March 2020); 2.2% per annum (p.a.) over the last 3 years; 3% p.a. over the past 5 years and 5.6% p.a. over the past decade.
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