Romanian Pension SystemSnapshot 2011

Crinu Andanut Phd, CEO

Split, September 2011

ContentContent

I. Romanian Pension System

II. Up to date market situation

III. Investment results

IV. Latest initiatives on the agenda

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I. Romanian Pension System

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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

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II. Up to date market situation

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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III. Investment results

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

Market weighted average returns versus InflationMarket weighted average returns versus Inflation

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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%

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IV. Latest initiatives on the agenda

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

Thank you for your attention!