Equity investments of Bulgarian pension funds grow 17.4% in Q3; rate of return improves

20.11.2020 Source: FSC; FFBH

The net assets of the Bulgarian private pension funds registered 3.8% QoQ increase (+BGN 605m) over Q3’20. On an annual basis, net assets grew by BGN 1.3bn (+8.3%) to BGN 16.5bn as of end-September, according to data released by the Financial Supervision Commission. The total contributions during the quarter came to BGN 435m. The amount of the investments increased by BGN 1bn to BGN 15.5bn over the quarter while the uninvested cash decreased by BGN 427m to BGN 913m or 5.5% of the net assets. The investments in government bonds grew by BGN 371m (+4.3%) to account for 54.4% of the net assets while corporate bonds were down by BGN 14m to 9.5% of net assets. Equity investments reached their highest level ever after 2 consecutive growth quarters by adding BGN 678m QoQ (+17.4%) to 27.8% of the net assets as the investments in CIS were up BGN 593m and investments in shares added BGN 85m. 9m’20 revenue of the pension insurance companies grew 6% on annual basis to BGN 156.4m with income from fees and charges adding 3.6% YoY. The net profit, however, declined 4.7% YoY to BGN 45.6m due to the negative result from managing own funds in 2 of the companies. The total number of insured individuals in all 4 types of pension funds is 4.8m, up by 1.6% YoY and 0.2% QoQ. The annual weighted-average nominal rate of return for the last 24 months period improved in Q3 and came to positive 0.85% for UPF (+0.43% at end-June), +1.08% for PPF (+0.50% at end-June) and +1.14% for VPF (+0.49% at end-June).