ROMANIA - Romania's mandatory pension system returned 17.7% in 2009 while the voluntary system boasted returns of 15.9%, figures by the Romanian Pension Fund Association (APAPR) showed.
Actively management fixed income investments and high interest rates helped drive returns, APAPR said.
APAPR chairman Crinu Andanut said: "Our pension funds' results remained strong during this troubling year, as managers achieved a fine risk-return balance in investing the still very low level of assets. Romanian pension funds weathered the storm in solid positive territory and look forward to the no-less-challenging markets of 2010, for which expectations are still mixed between extremes."
The second pillar mandatory scheme has €565m (US$811m) in assets under management, while the third pillar has €48m.
The ability of the pension system to grow has been hampered by the government's decision to decrease the pre-arranged contribution level for 2010. The contribution level was supposed to be 3% in 2010, up from 2% in 2009. Instead, a draft of the budget to be adopted this month, calls for a contribution increase of only half a percent, APAPR said.
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