The value of the units in privately managed mandatory pension funds (Pillar II) increased by 0.9%-1.0% in April compared to March and posted nominal annual advances of 5%-6%, according to data published by the financial markets supervisory body ASF.

This was, however, only half of the annual inflation (11.2% y/y in April).

Lower inflation and base effects after the drop in bonds’ prices last year are closing the gap between inflation and pension funds’ performance.

The differential between the fund units’ annual increase and inflation (a measure of unit funds’ real performance) plunged to nearly -25% y/y in September 2022 to gradually narrow to 5.3% in April 2023.

iulian@romania-insider.com

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