Romania's pension funds outperformed mutual funds in the first 4 months of operation
ROMANIA. Private pension funds managed to outperform the majority of
mutual funds in Romania, during the first four months of operation
(20th May - 31th August), a survey done exclusively by
www.privatepensions.ro shows. Half of the mandatory pensions funds (7
of 14) and 37% of the voluntary pension funds (3 of 8) managed to
return positive results during those four months, ranging from +0.4% to
+7%. The lowest negative return by a pension fund was -5.9%.
At the same time, only 30% of the mutual funds on the local market
posted positive returns, those ranging from 0.2% to 3.8%. Also, the
mutual funds' negative returns during those four months alone were of
up to -30.9%.
In the analysed period, the four monetary mutual funds returned only positive results, ranging from 2% to 3.5%. The bond funds returned from -3.8% to +3.8%, with 8 out of 10 funds returning positive yields and 2 negative returns. Among the mixed (diversified) funds, only 3 out of 20 returned psoitive results during the period, the best positive yield being 0.9%. The funds returning negative numbers reported yields as low as -18.4%. At last, equity funds, mostly investing in shares, were the most hit by the falling stocks. Only one of the 18 equity funds on the market returned a positive result (1.8%), the other 17 returning negative yields as low as -30.9%.
