Last year Macedonia was “tarnished” by political turmoil, says Janko Trenkoski, general manger of KB First Pension Company, one of the two mandatory pension funds. For that reason, he adds, efforts to develop the system were thwarted. “We have not implemented lifecycle fund reforms, nor have we talked about expansion of diversifiers within the pension fund portfolios, such as alternatives.” In the meantime, KB First Pension Company approached the limit of 30% exposure to international equity, having rebalanced twice within the year owing to strong growth in the asset class. The limited exposure to local equities is still declining, while the rest of the portfolio is in domestic debt, which is yielding more than 3%, much higher compared to similar developed country debt. “The returns are robust, once again, prompted by the strong dollar and European equity returns,” adds Trenkoski. The market as a whole had another year of strong growth in assets under management, given that the system is still in an accumulation phase. Fees paid to the mandatory funds are also declining, and will continue doing so until 2020.
http://www.ipe.com/pensions/pensions-in/cee/poland-life-begins-with-equities/10011312.articleThursday, April 7, 2016
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