Weight Of Shares In Romanian Private Pension Fund Assets Could Increase To 25% In Next Five Years

04.27.2011 By Ioana Tudor

The weight of shares in the total assets of Romania's private pension funds could increase to at least 25% in the next five years, from the current 15%, if the number of Bucharest Bourse (BVB) issuers rises and they diversify the fields in which they operate, said private pension regulator CSSPP.

The weight of shares in the total assets of Romania's private pension funds could increase to at least 25% in the next five years, from the current 15%, if the number of Bucharest Bourse (BVB) issuers rises and they diversify the fields in which they operate, said private pension regulator CSSPP.

Two years ago, the weight of shares in the assets of private pension funds stood at about 2%.

According to data released by CSSPP, the current asset structure of the country's private pension funds is conservative and lacks diversity, considering that fund administrators invested mainly in state bonds (66.99%), shares (15.08%), corporate bonds (9.08%), bank deposits (4.74%) and other types of bonds (3.07%).

The BET index, which tracks the ten most-traded shares on the BVB, includes mainly companies that operate in the financial and energy sectors.