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Private Pensions as at 31 December 2014


Bucharest, 17 March 2015
- The value of total assets under management at the level of the entire private pension system was 20.2 billion lei (4.5 billion euro) in 2014, up by 36.65% as compared to 2013.

Last year, the private pension share of GDP was 3.05%, as compared to 2.34% in 2013.


Privately managed pensions (Pillar II)

The totalvalue of net assets registered by the private pension funds (Pillar II) as at 31 December 2014 was 19.12 billion lei (4.27 billion euro), the annual pace of growth being 37.15%.

At the end of last year, 6.29million participants were registered in the pension system of Pillar II, up by 4.20% as compared to 2013.

The average contribution at the level of participants with contributions in December 2014 was 89.41lei, with an annual pace of growth of 11%.

The average value of a Pillar II account for the 3.19 million participants with monthly contributions (between May 2008 and December 2014)was 4,479 lei (approximately 1,000 euro), meaning an annual advance of 34%.

In 2014, more than 2.3 million participants had amounts in accounts of up to 5,000 lei. The account value for approximately 602,000 persons was between 5,000 and 10,000 lei, and for approximately 309,000 persons it exceeded 10,000 lei.


Investment structure

At the end of 2014, as compared to 2013, the amounts invested in all financial instruments increased, with the exception of bank deposits and hedging instruments. The increases were between 11% and 93%, even more than two or three times higher (e.g. amounts invested in bonds of foreign non-governmental bodies, shares or units), while total assets rose by 37.15%.

At the end of last year, 93.24% of the assets were invested in the country, down slightly as compared to December 2013 (94.14%) and June 2014 (93.58%). At the same time, 5.45% of the assets were investments in EU Member States, and 1.31% in bonds of foreign non-governmental bodies, such as EBRD, the EIB and the WB.


Pillar II Investment structure - total (billion lei)

No.

Financial instruments

Dec. 2013

June 2014

Dec. 2014

Dec. 2014/ Dec. 2013

Dec. 2014/ June 2014

1

Bank deposits

1.19

1.10

0.76

-36.26%

-30.95%

2

Government securities

9.35

11.05

13.02

39.28%

17.83%

3

Municipal bonds

0.04

0.07

0.07

92.84%

6.16%

4

Corporate bonds

0.66

0.77

0.80

21.13%

3.69%

5

Bonds of foreign non-governmental bodies

0.08

0.14

0.25

209.48%

75.91%

6

Shares

2.14

3.00

3.66

170.69%

21.83%

7

UCITS units

0.41

0.48

0.58

141.24%

21.27%

 


Voluntary Pensions (Pillar III)

The value of net assets registered by private pension funds in December 2014 was 1.04 billion lei (0.2 billion euro), with an advance of 28.12% as compared to December 2013. At the end of last year 346,452 participants were registered in the voluntary pension system, up by 10.56% as compared to 2013.

Last year, the average value of a Pillar III account was 3,001 lei (approximately 670 euro), up by 16% as compared to the end of 2013.

Investment structure

In December 2014, the amounts invested in bank deposits and municipal bonds decreased as compared to December 2013. The other classes of assets increased between 9.60% and 45.75%, given an advance of the total assets of approximately 28.11%.


Pillar III Investment structure – total (mil. lei)

No.

Financial instruments

Dec. 2013

June 2014

Dec. 2014

Dec. 2014/ Dec. 2013

Dec. 2014/ June 2014

1

Bank deposits

64.51

60.26

47.91

-25.73%

-20.50%

2

Government securities

521.97

588.24

688.4

31.89%

17.03%

3

Municipal bonds

4.58

4.10

4.04

-11.85%

-1.38%

4

Corporate bonds

44.57

53.72

48.85

9.60%

-9.06%

5

Bonds of foreign non-governmental bodies

12.73

14.17

18.56

45.75%

31.00%

6

Shares

154.06

196.63

223.46

45.05%

13.64%

7

UCITS units

8.52

8.73

11.63

36.51%

33.19%

 

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About ASF

The Financial Supervisory Authority (ASF) is the institution that authorises, regulates, supervises and controls the entities operating on the non-banking financial market in Romania.

Established in 2013 through assuming and reorganising all powers and prerogatives of the National Securities Commission (CNVM), Insurance Supervisory Commission (CSA) and Private Pension System Supervisory Commission (CSSPP), ASF contributes to strengthening an integrated operational and supervisory frame on three markets amounting to more than 10 million participants.

More information may be found at www.asfromania.ro