The mandatory private pension funds (2nd Pillar) manage net assets of 13.94 billion lei (3.94 billion euros), and they had an average yield of 11.75% in 2014, according to data centralized by the Romanian Pension Funds' Association (APAPR).
The eight mandatory private pension funds reached 6 million contributors at the end of 2013, and their net assets consist of gross contributions of 11.3 billion lei and net investment income of 2.6 billion lei.
In 2013, the average yield of all these mandatory private pension funds had the highest value of the last three years.
During last year, the assets managed by the 2nd Pillar pension funds have advanced by almost 45%, an evolution exceeding the industry's forecasts, due especially to the excellent investment results, according to the APAPR. In January 2013, APAPR's estimate was of net assets of more than 13 billion lei at the end of the year; now the statistics show net assets above 13.9 billion lei in the accounts of the system's contributors.
Since their launching, the mandatory pension funds have been granted by the contributors the management of total gross contributions amounting to 11.3 billion lei.
'From the investment performances point of view, the mandatory private pension funds have obtained, since their launching in May 2008, an average annualised return of 11.5%, an exceptional value for the low-risk profile specific to these funds, both in Romania and worldwide. During 2013, the private pension funds have significantly increased their role within the real economy, by increasing their investment quotas into shares (including by hefty subscriptions to all the public offers launched by the government), and contributing to the development of the capital market', states a release by the APAPR received by AGERPRES.
Currently, the 2nd Pillar funds hold shares of the companies listed at the Bucharest Stock Exchange worth more than two billion lei, which makes them one of the major corporate investors on the market. The 2nd Pillar private pension funds invest approximately 95% of their total assets in Romania.
The mandatory private pension funds have started operating in May 2008. Currently, the quota of the contribution directed to the 2nd Pillar is 4% of the contributors' gross income, but it will be raised to 4.5% from March 2014, then gradually to 6%, according to the laws in force.AGERPRES