Pillar III pension funds inhibited by restrictive deductibility and double taxation in Romania

The weighted rate of return for all medium-risk voluntary funds (Pillar III) was only 4% compared to 5.5% for the mandatory funds (Pillar II), calculated by the financial supervision authority ASF at the end of June. The differential in favour of Pillar II was constant at 1.5pp over the past seven months and 3.9pp in the three months before that. The more intuitive annual increase of the value of the fund unit shows a similar pattern and wider discrepancy: 8.9%-10.9%...