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The high volatility generated by the crisis in the first quarter of the year led to greater attention to short-term developments in the capital market and to a fine balance of the portfolios of private pension funds, in the sense of increasing the percentage of public titles, shows the Supervisory Authority. Financieră (ASF), which states that exposure in checking accounts, deposits and securities increased to 79.24% in March, from 74.64% in December 2019, according to News.ro.
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“The high volatility generated by the health crisis and, implicitly, by the economic and financial crisis in the first quarter of 2020 has led to greater attention to the evolution of the short-term capital market and a delicate balance of the portfolios of private pension funds, in the sense Thus, if as of December 2019 the exposure to current accounts, deposits and securities was 74.64%, in March 2020 it increased to 79.24%. the capital registered returns, given the sentiment In the economies strongly supported by fiscal and monetary easing programs, exposure to government securities and deposits decreased to 76.98% (September 2020), without significant changes. This factual situation takes into account both the good performance of the stock market , achieved in the period June – September, as the return of assets to values close to those registered before. This is the outbreak of the pandemic “, shows ASF.
Regarding Pillar III of private pensions, the investment structure is dominated by current accounts, deposits and fixed income securities in the proportion of 72.42% in September 2020 (slight increase compared to the level of 71.06% compared to December 2019).
The highest allocation to this exposure was recorded in March 2020, respectively 74.38%, rebalancing generated by turbulence and high volatilities in the stock and commodity markets.
At the level of the entire private pension system, there is a preference for investments in local currency (89.5%), followed by the euro (9.07%) and the dollar (1.39%).
“In conclusion, it can be observed that private pension funds have not significantly modified their exposures to various financial instruments, despite the rebalancing between fixed income instruments and variable income instruments, which has allowed them to reduce the volatility of the unit value . of net assets (VUAN), as well as a lower impact on the rate of return ”, shows ASF.
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