Romania’s seven Pillar 2 pension funds reported 0.8%-1.0% growth of their fund unit’s value in April, summing up to a total year-to-date (YTD) advance of 4%-6%.

This is significantly more than the 3.1% consumer price inflation over the first four months of the year.

The total assets of Romania’s P2 pension funds at the end of April, ten years after they were set up, reached RON 105.2 bln (some EUR 21 bln). This is 26% more than the RON 83.2 bln gross contributions made by the subscribers but 5.8% less than the value of the gross subscriptions indexed by consumer price inflation.

Historically, the P2 funds’ assets were above the inflation-indexed sum of contributions until May 2022. But the plunge in the prices of bonds dragged down the fund’s portfolios, and the overall assets stagnated until the autumn of last year. However, a recovery in investors’ sentiment has pushed up the market price of P2 portfolios since October.

iulian@romania-insider.com

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