FACTORI DETERMINANTI AI PERFORMANTEI FONDURILOR DE PENSII PRIVATE DIN ROMÂNIA ÎN CONTEXTUL EPIDEMIEI COVID-19
DETERMINING FACTORS OF THE PERFORMANCE OF PRIVATE PENSION FUNDS IN ROMANIA IN THE CONTEXT OF THE COVID-19 EPIDEMIC

Summary/Abstract: The aim of the paper is to analyse the effects generated as a result of the use of derivatives in order to achieve a risk management of financial performance within the mandatory pension funds in Romania. In carrying out the analysis, using a sample of 14 mandatory pension funds was used for the period June 2008 to November 2021, and our results indicate that there are remarkable differences for mandatory private pension funds in the use of derivatives, hence a noticeable differentiation in the level of financial performance of Pillar II. The appreciated results lead to the conclusion that confirms our assumptions according to which the mandatory private pension funds that manage their financial risks by using the hedging instruments have a higher performance compared to the mandatory private pension funds that do not resort to covering the financial risks. Our results present, in addition to an analysis of the financial risk management within the Pillar II pension funds in Romania, direct implications for the supervisory authorities in adjusting the policies or restrictions regarding the allocation of assets both for individual investors at the time of selection of the pension fund and for the administrators of pension funds in the management of the financial risks that threaten the performance of these portfolios.

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