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).
INVOLI, together with Vantage Towers Romania, proudly announces an enhanced strategic partnership aimed at transforming air traffic surveillance throughout Romania regional airports. This initiative marks a significant step in our joint commitment to advancing safety and operational efficiency across all levels of Romanian airspace. Partnership Overview Extended Collaboration: Building on the successful implementation of the […]
Emanuele Nicola Affaticati, a young boy of Romanian origin, will be given the recognition of "Alfiere della Repubblica" (Standard Bearer of the Republic) in Italy for preventing a murder. Emanuele lives in the town of Fiorenzuola D’Arda, in the Piacenza area. In December 2022, he foiled the plan of a man who intended to kill […]
The salaries in the local business services industry have seen a 4% increase in March 2024 compared to September 2023, according to the HR Barometer conducted by the Business Service Leaders Association (ABSL) and PwC Romania. Bucharest leads in salary increase levels at 4.7%, while the region of Banat - Transylvania witnessed an increase of only 2.1%. […]
Romania's Central Electoral Bureau recently published the definitive list of candidacies for the European Parliament elections. According to the BEC decision, 12 political formations and electoral alliances, as well as 4 independents, will participate in the European elections. The candidacies submitted by the Electoral Alliance of Social Democrats and Liberals (PSD-PNL), the United Right Alliance […]
Liberal (PNL) candidate for mayor of Bucharest, Sebastian Burduja, who recently presented his plan for the city, argued that the Romanian capital should strive to become a port on the Danube. The project was first envisioned roughly 170 years ago, in the 1850s, by the Romanian authorities at the time. "It's a project that I […]
Romania will host the third hydrogen bus roadshow this spring as part of the JIVE projects supported and funded by the Clean Hydrogen Partnership, followed by Greece, Bosnia Herzegovina, and Bulgaria. During the first JIVE project CEE roadshow, which ran between November 2022 and January 2023, the bus traveled across Slovenia, Croatia, Czechia, Slovakia, and […]
