The mandatory private pension funds (Pillar II) in Romania have recorded an average decrease of the fund units by 6.7 pct at March 30, 2020, over December 31, 2019, according to a release of the Association for Privately-Administered Pensions of Romania (APAPR).
"In the first three months of this year, this depreciation is on average -6.7 pct for the mandatory private pension funds (Pillar II) in Romania. This development is caused mainly by the decreases recorded by the global financial markets. The Bucharest Stock Exchange dropped by 24 pct for the same period, the stock exchanges in the UK and Germany by 25 pct, and the stock exchange in France by 26 pct," the release shows.
According to the organization, the private pension funds represent a faithful mirror of economic development, of the labor market, but also of the financial markets in which they invest, with caution and responsibility, the money saved by Romanians. Following the powerful shock suffered by the financial markets, the private pension funds in Romania are faced with a temporary depreciation of the value of funds administered.
"In context, it must be recalled that the investment results of all the private pension funds remain positive if we look at them in a relevant time horizon, thus +1.3 pct in the last year (March 2019 - March 2020); a yearly average of +2.2 in the past 3 years; a yearly average of 3 pct in the past five years and a yearly average of 5.6 pct in the past ten years," the release mentions.
The administrators of Pillar II give assurances that they are managing the money saved by Romanians with maximum responsibility and caution in this difficult time, which will be overcome successfully.