How Romanian mandatory private pension funds invest during the crisis
Romania's mandatory pension funds (2nd pillar) avoided listed shares,
but bought state and corporate bonds using the surplus cash and
deposits during July, data by CSSPP, Romania's private pensions
regulator, shows. The funds, managing assets of almost EUR 81 mln., had
the following portfolio structure at the end of July: 58.9% in state
bonds (as against 43.8% in June), 12.8% in corporate bonds (6.7% in
June), 5.7% in listed shares (6.1% in June), 22.3% in cash and deposits
(43.1% in June) and 0.3% in mutual funds (same as June).
Against June, the funds adopted an even more prudent attitude, investing in fixed income instruemnts (state and corporate bonds) and avoiding shares to also avoid the massive losses in the Romanian stock market. During July, the biggest three funds on the market again had different investment strategies and approaches: ING, the market leader, maintained in broad lines it's previous portfolio, but also used some cash and deposits to buy corporate bonds and listed stocks and shares. ALLIANZ-TIRIAC, the second largest fund, bought a lot of state bunds, instruments that soared from 0% to 50% in the total portfolio, and also bought corporate bonds while reducing exposure on shares. GENERALI, the third largest fund, continued amassing state bonds and quadrupled it's exporure on corporate bonds, while selling some stocks and reducing deposits.
18.08.2008
