Private pension funds in Romania accumulated assets amounting to 131.5 billion RON at the end of December 2023, up by 31.4% compared to the end of the previous year, according to the Financial Supervisory Authority (ASF) Report on the evolution of the private pension system in 2023.
Thus, at the end of the fourth quarter of 2023, privately managed pension funds (Pillar II) accumulated assets amounting to 126.7 billion RON, 31.4% more compared to December of the previous year, and the voluntary pension funds (Pillar III) accumulated assets worth 4.75 billion RON, up 31.1% compared to the same reference period.
Financial instruments from the portfolios of private pension funds that are traded on financial markets are valued by mark-to-market, regardless of the time period for which they are expected to be held in the portfolios. In this situation, the evolution of the unitary value of the net asset of the private pension funds may include, in the short term, potential episodes of volatility, being influenced by them. However, the investment horizon of the private pension funds is a long-term one, the funds demonstrating good resilience following the shocks that affected the financial markets in the past, emphasizes the ASF.
On December 31, 2023, 8.86 million participants were registered in the 17 private pension funds, at the end of the previous year, a number of 8.59 million participants were registered. The number of participants registered in the privately administered pension system on December 31, 2023 was 8.15 million people, compared to 7.96 million people registered in December 2022, and the number of participants registered in the optional pension system was 771,000 people, compared to 627,000 people registered on December 31, 2022.
According to the Report, the investment policy within the asset portfolios of private pension funds continues to be focused on the local financial market, the share of investments in fixed income instruments representing 73% of the total investment portfolio of private pension funds. At the end of December 2023, a percentage of 23% was invested in shares.
AGERPRES
