romanian pension system snapshot 2011 crinu andanut phd, ceo split, september 2011
TRANSCRIPT
ContentContent
I. Romanian Pension System
II. Up to date market situation
III. Investment results
IV. Latest initiatives on the agenda
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Public Pension Funds Private Pension Funds Private Pension Funds
Romanian Pensions System
Mandatory membership
Employee contribution: 10,5 % from employee gross salary (income)Employer contribution : 20,8% related to employee gross salary (income)
Mandatory membershipfor employees < 35 years oldVoluntary membership for employees > 35 years old, but < 45 Contribution (in 2011) : 3% from employee gross income
Voluntary membership.
Contribution: - max. 15% related to gross income; -joint contribution (employee & employer) is encouraged through the tax deductibility of 400 eur/year for both employee & employer
Administration fees:≤ 2,5% of each contribution≤0,05% of AuM / month
Administration fees:N/A
Administration fees:≤ 5% of each contribution≤0,2% of AuM / month
Market Situation, first half 2011 – P2 (Mandatory pension funds)Market Situation, first half 2011 – P2 (Mandatory pension funds)
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Pension funds management companies
No. of Participants
Market share(by No. of
Participants)Net AuM
(EUR mn)Market share( by Net AuM)
ING 1 672 843 31,4% 493,4 38,9%
ALLIANZ-TIRIAC 1 319 906 24,8% 296,6 23,4%
GENERALI 511 237 9,6% 102,4 8,1%
AVIVA 395 704 7,4% 84,4 6,6%
EUREKO 383 157 7,2% 70,2 5,5%
Others( BCR, BRD, AEGON, ALICO) 1 041 972 19,6% 222,2 17,5%
TOTAL market 5 324 819 100% 1 269,2 100%
Market Situation, first half 2011 – P3 (Voluntary pension funds)Market Situation, first half 2011 – P3 (Voluntary pension funds)
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Pension funds management companies
No. of Participants
Market share(by No. of
Participants)Net AuM (EUR mn)
Market share( by Net AuM)
ING 95 264 39,5% 41,7 45,8%
ALLIANZ-TIRIAC 48 751 20,2% 20,7 22,7%
BCR 66 011 27,3% 15,8 17,3%
AVIVA 10 076 4,2% 5,0 5,5%
RAIFFEISEN AM 7 239 3,0% 4,7 5,2%
Others (GENERALLI, BRD, ASIROM, ONIX-OTP) 14 067 5,8% 3,2 3,5%
TOTAL market 241 408 100% 91,0 100%
Pillar 2 (mandatory pension funds) direct sales analysisPillar 2 (mandatory pension funds) direct sales analysis
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Investment Returns (P 2 & P 3 AZT Funds)Investment Returns (P 2 & P 3 AZT Funds)
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VUAN* Since Inception** Since 2010 Last 12Months
AZT Moderato (Pillar 3) 13,61980036,20% 17,35% 6,33% Gross Return 7,79% 10,65% 6,33% Anualized Return
AZT Vivace (Pillar 3) 13,03079630,31% 14,70% 6,36% Gross Return
6,81% 9,06% 6,36% Anualized Return
AZT Viitorul tau (Pillar 2) 14,80188148,02% 19,39% 6,75% Gross Return
13,05% 11,86% 6,75% Anualized Return* - data as published by CSSPP for 31/7/2011 ** - inception dates are 18/6/2007 for AZT Moderato, 26/7/2007 for AZT Vivace and 20/05/2008 for AZT Viitorul Tau
Romanian Market Investment ReturnsRomanian Market Investment Returns
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Pillar II FundPillar II Funds investments investment returns returns
Fund
Since Inception 2010 up to date Individual Return * Rank
Average Return**
IndividualReturn * Rank
Average Return**
ALICO 48,96% [2]
48,71%
19,37% [3]
18,76%
ARIPI 48,07% [3] 18,69% [5]
AZT VT 48,02% [4] 19,39% [2]
BCR 45,61% [5] 20,82% [1]
BRD 32,92% [9] 15,96% [8]
EUREKO 44,93% [6] 19,15% [4]
ING 55,55% [1] 18,64% [6]
AVIVA 39,34% [7] 17,41% [7]
VITAL 38,85% [8] 14,48% [9]
Pillar III Fund Pillar III Fund s investment s investment returnsreturns
Risk ClassFund
2010 up to dateRank
Average
Return**
LowBCR PRUDENT 10,78% [2]
14,53%
OTP STRATEG 8,88% [3]
BRD PRIMO 11,54% [1]
Medium
BRD MEDIO 9,86% [8]
EUREKO CONFORT 18,97% [1]
RAIFFEISEN ACUMULARE 16,92% [3]
STABIL 11,44% [6]
ING OPTIM 14,10% [5]
AZT MODERATO 17,35% [2]
PENSIA MEA 14,50% [4]
CONCORDIA MODERAT 10,68% [7]
HighAZT VIVACE 14,70% [1]
ING ACTIV 14,18% [2]
* CSSPP Data relevant for 31/07/2011** Calculated as a weighted average of funds returns based on the fund market share
Portfolio Asset Allocation Structure – Pillar 2Portfolio Asset Allocation Structure – Pillar 2
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AZT Viitorul Tau (Medium Risk fund) Market Average Legal limits
Cash & deposits 9,70% 9,84% 20%
Government bonds 66,53% 65,62% 70%
Municipal bonds 1,60% 1,01% 30%
Corporate bonds 7,86% 8,08% 30%
Supranational bonds 3,13% 1,55% 5%
Listed equity 10,12% 13,02% 35%
Mutual funds 0,93% 0,88% 5%
Derivatives 0,13% -0,02%
Portfolio Asset Allocation Structure – Pillar 3Portfolio Asset Allocation Structure – Pillar 3
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AZT Moderato (Medium risk fund)
AZT Vivace (High risk fund) Market
Average Legal limits
Cash & deposits 4,55% 4,21% 7,91% 20%
Government bonds 68,65% 60,39% 63,96% 70%
Municipal bonds 2,45% 1,50% 1,50% 30%
Corporate bonds 7,59% 6,26% 6,85% 30%
Supranational bonds 2,00% 2,24% 3,64% 15%
Listed equity 13,56% 24,17% 15,10% 35% / 50%
Mutual funds 1,03% 1,06% 0,99% 5%
Derivatives 0,17% 0,08% 0,05%
Latest initiatives on the agendaLatest initiatives on the agenda
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Private Pensions Guarantee Fund
Gross contributions guarantee
Life time cycle (Pillar 2)
Pay-out phase legal frame
Occupational pensions