CSSPP: Mandatory pension funds' equity investments, below 2% of assets
ROMANIA. Mandatory pension funds' (2nd pillar) equity investments fell below 2% of total net assets at the end of October, as against 3.42% of net assets at the end of September, 4.23% at the end of August and 9.5% at the end of May (the start of the system) - CSSPP executive manager Cristian ROSU stated in pensions conference organized by Media XPRIMM.
During the last few months, mandatory pension funds stopped buying equity to avoid exposure to the sharp decline in stock / equity markets. The Bucharest Stock Exchange lost 67% of its composite value during the first 10 months of this year, on of the sharpest drops in the region and in the world. However, most of the country's mandatory pension funds managed to stay in the black, avoiding exposure o equity and buying state securities and amassing bank deposits.
