The diversification of the investment portfolio of private pension funds, higher management fees (in line with those charged in Europe), and higher individual contributions to Pillar II are among the proposals of the CFA Romania Association regarding the Draft Emergency Ordinance for the amendment and the completion of normative acts in the field of private pensions.

CFA Romania also argues for the diversification of the investments pursued by the private pension funds and, in this context, for allowing them to invest in private equity (PE) funds.

"In the absence of diversification, the pension funds will not be able to generate a return higher than inflation in the medium term, which will go against the contributors. There are milestones assumed by Romania through the National Recovery and Resilience Program (PNRR) in the direction of diversifying the portfolios of Pillar II private pension funds," said Adrian Codirlaşu, vice-president of CFA Romania, Economica.net reported.

CFA Romania argues that banning pension fund investments in private capital funds (Private Equity) is not a good solution. It explains that the lack of liquidity of the investments in the PE funds can be addressed by supplementary regulatory requirements.

andrei@romania-insider.com

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