Total assets held by privately-managed pension funds reach 57.43 bln lei in H1 2019

Total assets held by the privately-managed pension system reached 57.43 billion lei (12.13 billion euros) in H1 2019, up by almost 26 percent from the 45.6-plus billion lei recorded a year ago, shows data of the Financial Supervisory Authority (ASF). 

As of end-June 2019, private pensions accounted for 5.8 percent of the GDP, compared to 5.22 percent in December 2018. 

"The assets of privately-managed pension funds topped 12 billion euros at the end of H1 2019, getting to account for 5.8 pct of GDP. Privately-managed pension funds are important institutional investors in the economy, and the investments made through the Bucharest Stock Exchange have contributed, alongside other institutional investors, to the Bucharest Stock Exchange being promoted to emerging market status by FTSE Russell," said ASF Vice-President Dan Armeanu. 

As of June 30, 2019 the total net assets held by privately-managed pension funds (Pillar II) amounted to 55.14 billion lei (11.64 billion euros), having advanced by an annual rate of 26.15 pct. 

There were 7.34 million participants registered in the privately-managed pension system as of June 30, 2019, almost 1.26 percent more than at the end of 2018. 

The average monthly contribution of a Pillar II participant was 182.20 lei, and the average account value in the privately-managed pension system was 7,631 lei (1,612 euros), by 14.39 percent more than at the end of 2018. 

Payments to participants from the net personal assets in H1 2019 totaled 33.29 million lei for 3,522 participants and beneficiaries. 

The mid-year net assets held by the optional pension system (Pillar III) totaled 2.27 billion lei (0.48 billion euros), up 20.34 pct annually, shows ASF data. 

As of end-June 2019 there were 486,310 contributors to the optional pension scheme, 3 percent more than at the end of 2018. The average monthly contribution of a Pillar III participant was 138.48 lei. 

According to ASF data, as of mid-2019 the average account value of an optional pension plan was of 5,058 lei (1,068 euros), up 10.74 percent compared to December 2018. 

Payments performed in H1 2019 from the net personal assets to the participants totaled 28.56 million lei to 4,033 contributors and beneficiaries. 

ASF is tasked with regulating and supervising the insurance, private pensions and capital markets, contributing to strengthening the integrated operating framework of the three sectors which total over 10 million participants.