The assets of private pension funds in Romania reached 131.5 billion lei at the end of 2023

April 2, 2024, 11:58AM GMT+0200

According to the Report of the Financial Supervisory Authority (ASF) on the evolution of the private pension system in 2023, private pension funds in Romania accumulated assets worth 131.5 billion lei at the end of December 2023. This represents an increase of 31.4 % compared to the same period of the previous year.

At the end of the fourth quarter of 2023, privately managed pension funds (Pillar II) had assets worth 126.7 billion lei, up 31.4% compared to the same period in 2022. Optional pension funds (Pillar III) had also registered a significant increase, with assets totaling 4.75 billion lei, up 31.1%.

The report points out that financial instruments in private pension fund portfolios are valued at mark-to-market, which can generate episodes of short-term volatility in net asset value. However, the investment horizon of the funds is long-term, and they have demonstrated good resilience in the face of previous shocks in the financial markets.

At the end of 2023, the total number of participants in the 17 private pension funds reached 8.86 million, up from 8.59 million recorded at the end of the previous year. Within the privately administered pension system, 8.15 million participants were registered, and 771,000 people were registered in the optional pension system.

The investment policy of private pension funds was still focused on the local financial market, with 73% of the total portfolio invested in fixed income instruments. Equity investments represented 23% of the portfolio at the end of December 2023.

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