Pillar | Romania Feed

BRD Pensii, the smallest Pillar II private pension fund in Romania, which is getting ready to be acquired by Banca Transilvania from French-held BRD-SocGen, has doubled its investment in electricity generation company Hidroelectrica (H2O) on the Bucharest Stock Exchange.

All seven mandatory private pension funds in Romania, known as Pillar II, the largest investors at the Bucharest Stock Exchange and the second largest buyer of bonds issued by the finance ministry, after the banking system, in October 2023 increased their ownership stakes in companies listed on the local capital market, in line with data aggregated by Ziarul Financiar (ZF) daily.

The seven mandatory private pension funds in Romania, known as Pillar II, generated an annual average yield of 18.2% in the last 12 months (between October 2023 and October 2022), for the 8 million Romanian participants, way above the inflation rate of 8.07% during this interval.

The seven mandatory private pension funds in Romania, known as Pillar II, ended 2022 with a total turnover of RON344 million, down 43% from 2021, and a 65% lower profit, of RON87 million, as per calculations by Ziarul Financiar (ZF) daily based on reports from Pillar II funds.

Through the seven Pillar II mandatory private pension funds, to which they contribute 3.75% of their gross monthly income, several million Romanian employees have come to own 20% in Transgaz (TGN.RO), the company that operates the country’s natural gas transmission system, ZF has calculated from the latest Pillar II reports.

BRD Pensii, which manages the Pillar II fund with the lowest net asset unit value since its launch in 2008, of RON23.49 vs RON10 in 2008, is contemplating several scenarios with regard with its exit from this segment, including sale to another manager or a possible activity transfer to BRD Asigurari de Viata, in line with ZF information.

The seven Pillar II (mandatory) private pension funds in Romania, which hold significant stakes in the companies listed on the Bucharest Stock Exchange, had RON87 billion assets at the end of September 2021, an increase of RON12 billion on the end of 2020, the latest Financial Supervisory Authority (ASF) data show.

The seven Pillar II mandatory private pension funds, which are the largest investors on the Bucharest Stock Exchange, ended June 2021 with record assets of RON84.4 billion, an increase of RON18.5 billion on June 2020, Romania’s Financial Supervisory Authority says.

The seven private pension funds operating on the mandatory segment in Romania (Pillar II) had assets of RON81.4 billion at the end of April 2021, RON1.2 billion higher than a month ago and RON6.3 billion higher compared with the beginning of 2021, financial regulator (ASF) data showed Friday.

The seven private pension funds operating on the mandatory segment in Romania (Pillar II) had assets of RON80.2 billion at the end of March, RON5 billion higher compared with the beginning of the year.

The seven private pension funds operating on the mandatory segment in Romania (Pillar II) had assets of RON77.1 billion in February, RON470 million less than in February, breaking a 10-month growth streak, financial regulator data showed Tuesday.

The seven private pension funds operating on the mandatory segment in Romania (Pillar II) had record assets of RON78.2 billion at the end of January, RON3 billion higher compared with the end of 2020, financial regulator data showed.

Pillar II private pension funds generated an average yield of 6.2% in 2020, triple compared with the 2.06% inflation rate, despite the effects of the pandemic, stock declines in spring and uncertain economic climate, an official of the the Romanian association for private pensions APAPR said Monday.

The assets managed by the seven private pension funds operating on Romania's mandatory segment (Pillar II) reached RON75.14 billion at the end of 2020, with RON13 billion amassed in 2020 alone.