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).
Revolut, which already has 3.5 million clients in Romania out of the 40 million globally, announced it launched the refinancing facility in the country, which is also a global premiere. Revolut has provided unguaranteed loans for personal needs since August 2022 and has extended such loans to a total amount of RON 1.3 billion (EUR […]
Romania’s largest financial group, Banca Transilvania, through its subsidiary BT Asset Management, will manage the largest portfolio on the local asset management market after the BT Group takes over OTP Bank and its subsidiaries. At the end of February 2024, BT Asset Management was the fourth-largest player with assets worth RON 4.2 billion (EUR 840 […]
Romania's troubled flag carrier Tarom, the expansion of Constanta port, and a new terminal at Bucharest airport were on the list of investments discussed by prime minister Marcel Ciolacu during his visit to Qatar on April 16-17. The Romanian state would be interested in selling part of Tarom, which has incurred losses over the past […]
The combined automobile production of Romania’s two car plants, Dacia and Ford Otosan, increased by 7.1% y/y to 152,912 units in the first quarter of the year (Q1) based entirely on the robust performance of the Ford factory in Craiova, where the production of the Courier models gained momentum. Renault’s Dacia plant remains Romania’s leading […]
The Government of Romania on April 17 deferred a decision in the shareholders meeting at Nuclearelectrica on the continuation of the small modular reactors (SMR) project developed in Doicesti, saying that it supports the project but needs “a calibrated and integrated vision of the project.” The shareholders of Nuclearelectrica (BVB: SNN), one of the two […]
Romania's central bank may need more time before delivering the first reduction in borrowing costs in more than three years as inflation isn't slowing as fast as expected and risks remain elevated, Cristian Popa, a member of the Board of Administration of the National Bank of Romania, told
