Net assets of Bulgarian pension funds add BGN 364m in Q3; uninvested cash reaches an all-time high of BGN 2.1bn

25.11.2021 Source: FSC; FFBH

The net assets of the Bulgarian private pension funds increased by 2% QoQ (+BGN 364m) and by 14.4% YoY (+BGN 2.4bn) to BGN 18.9bn as of end-September, according to data released by the Financial Supervision Commission. The contributions during the quarter came to BGN 511m while the total number of insured individuals in all 4 types of pension funds was 4.8m at end-September, flat on quarterly basis. The amount of the investments were down by BGN 70m to BGN 16.8bn over the quarter while the uninvested cash rose by BGN 444m to an all-time high of BGN 2.1bn or 10.9% of the net assets. The investments in government bonds kept decreasing for a second consecutive quarter (-BGN 131m) to account for 45.6% of the net assets while corporate bonds were up by BGN 86m to 8.8% of net assets. The growth of equity investments slowed down to only BGN 10m, reaching BGN 6.2bn and accounting for 33.1% of the net assets. 9m’21 revenue of the pension insurance companies surged 58.9% on annual basis to BGN 248.6m with income from fees and charges increasing 18.8% YoY. The net income also surged 61.7% YoY to BGN 73.7m. The improvement of the net financial result is due to significant profit growth in two of the pension funds. The annual weighted-average nominal rate of return for the last 24 months period as of end-September came to 2.39% for UPF (+2.94% at end-June), +2.64% for PPF (+3.25% at end- June) and +3.46% for VPF (+3.91% at end-June).