BCR: Mandatory pension funds to manage EUR 1.5 billion in 2010
The mandatory private pension market (pillar II) will get to manage assets amounting to EUR 1.58 billion at the end of 2010, according to a report published by the analysts of BCR, the largest local bank. Until then, the assets of the mandatory pension market will be EUR 225 million at the end of this year, and EUR 793 million at the end of 2009. The specialists from BCR estimated an average return of 6.8% in 2008, 6.5% in 2009 and 5% in 2010 for pillar II.
In terms of impact on the capital market, the analysts from BCR estimate that mandatory pension funds will become somehow relevant only by 2010, when, according to the most optimistic scenario, they might have investments of EUR 450 million (30% of the total net managed assets) in stock listed on the Bucharest Stock Exchange. However, according to a closer analysis of the funds’ issuing prospects, the share of investments in listed shares might not reach more than 20%-25%, especially given the existing turmoil from the financial market and the prudence specific to the start of investments.
Even with the optimistic scenario, the mandatory pension funds will become significant as institutional investors on the Bucharest Stock Exchange only by 2010: by then, however, they might be an incentive for the small and medium sized companies’ intent to become listed.
