The seven mandatory private pension funds (Pillar II) delivered a weighted average return of 5.9% in 2021, which translates into a net gain of RON 4.5 bln (RON 0.9 bln) for future pensioners, the association of fund managers APAPR announced. The aggregated assets of the seven funds rose by 19% YoY to RON 89 bln (EUR 18 bln) at the end of December. The fund managers received RON 9.77 bln (EUR 2 bln) contributions, 9.6% more than in 2020, to invest. "The weighted average return of the seven funds was 5.9% in 2021, slightly below the 6.2% in 2020. This return translates into a net gain for participants worth RON 4.5 bln (EUR 910 mln) in 2021, slightly above the gain of RON 4.4 bln (EUR 900 mln) generated in 2020," according to a press release of the Association for Privately Managed Pensions in Romania (APAPR). The correct interpretation of the return calculated by APAPR is the annualized nominal yield received by an investor who purchased pension funds units exactly five years earlier in advance of the moment of calculation. Over the past five years, the annualized inflation was 4.2% - resulting in a real weighted average return of the seven pension funds of 1.66%. The BET-TR (total return - including dividends) has more than doubled over the five-year period. The country's GDP rose by an annualized 3.5% over the past five years to Q3, 2021. For the seven individual funds, however, the annualized real return ranged between 0.4% (the fund managed by BCR) and 1.7% (the funds managed by Metropolitan and Allianz Tiriac. The fund managed by Generali (Aripi), declared as a higher-risk fund, generated a 1.8% annualized real return. While the performances of the PII pension funds are positive, at least according to the official definition of the return, when it comes to the PIII pension funds the situation is significantly weaker - despite the fact that they are managed by roughly the same fund managers. Specifically, APAPR declares a 5.5% annualized average return for the PIII pension funds for December, which translates into a 1.3% annualized real return. The medium-risk PIII funds posted significantly lower yields. The fund managed by BRD posted a negative annualized average return, and the fund managed by BCR was not far from zero (in real annualized terms).
Ion Iliescu, Romania’s first president after the fall of communism in December 1989 and one of the country’s most influential and controversial political figures, died on Tuesday, August 5, at the age of 95. His death was announced by the government, which expressed condolences to his family and stated that details regarding the state funeral […]
A large medieval cemetery was discovered this week at the Hasdeu High School in Lugoj, western Romania. The complex may have extensions into the surrounding yards and a high historical importance. Although the excavations are only just beginning, with an estimated 10% of the necessary work completed so far, the discoveries have already showed promise. […]
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Two Dacian gold bracelets from the collection of the National History Museum of Romania (MNIR) have been recently 3D scanned as part of a digital preservation project highlighting these exceptional archaeological pieces. The initiative, launched by the museum, aims to showcase the artistry and cultural significance of Dacian goldsmithing. Crafted with remarkable skill, the spiral-shaped […]
Arad, a city in western Romania dubbed the “Little Vienna,” will organize a celebration of its history and culture in the Austrian capital, between August 8 and 20. The Days of Arad Culture begin on August 8 with the photo exhibition "Arad of Yesterday and Today," which will highlight the architectural connection of the city […]
In a report published on Tuesday, August 5, the Group of States against Corruption, or GRECO, said that Romania has fully implemented two of the 26 recommendations made in the 2023 Fifth Round Evaluation Report on preventing corruption and promoting integrity among top executive functions of the central government and law enforcement. Out of the […]
