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).
President Nicușor Dan has nominated Senate president Ilie Bolojan, a leader of the National Liberal Party (PNL) and former interim president, for the prime minister seat. Dan said Bolojan is “the best person to carry out the needed adjustments in the state administration.” He pointed to Bolojan’s track record with reducing spending, and said he has […]
Balkanik Festival – Home of World Music, set to take place at Uranus Garden between September 5 and September 7, lines up this year artists who "celebrate that form of joy that does not ignore reality, but faces it with beauty, energy, and solidarity," the organizers said. The artists performing in September in Bucharest will […]
The mayor of Timișoara, Dominic Fritz, announced on Friday, June 20, that two new bridges over the Bega River will be built in the city. The bridges will be financed with EU-backed funds worth over RON 130 million. The bridges in question are the Solventul Bridge, which will connect Gării Street to Dâmbovița Boulevard and […]
A Sarmatian necropolis nearly 2,000 years old was discovered after archaeological excavations were carried out at the Mehala II site in the municipality of Timișoara, in western Romania. Researchers discovered 15 inhumation graves, most arranged in rectangular pits with rounded corners, although some no longer retain their original outline, having been disturbed by the passage […]
The George Enescu Philharmonic Orchestra will deliver on June 26 a concert marking Romania Day at the Osaka World Expo. Additionally, the Bucharest-based orchestra will present a series of other concerts and recitals, both within the Romanian Pavilion and outside, at Toyonara Hall in Osaka. The George Enescu Philharmonic Orchestra's concerts will be conducted by […]
Sphera Franchise Group, the largest food service group in Romania, has opened its first Cioccolatitaliani store in the seaside resort of Riccione, in Italy’s Rimini tourist area. This marks the official launch of Sphera Group’s development plan for the premium Italian brand of coffee, gelato, and pastry. Under the plan, it will open four locations […]
