Raiffeisen Mandatory Pension Fund’s portfolio close to EUR 1 billion
High yields of mandatory pension funds in Croatia managed to compensate low rate of contributions for pension savings, but in the coming years this will not be the case, says Damir Grbavac, CEO of Raiffeisen Mandatory Pension Fund Management Company.
Raiffeisen’s fund closed last year with 443,000 clients, which is nearly 32 percent of the total number of mandatory pension funds’ clients in Croatia. The value of the fund’s assets exceeded HRK 6.4 billion, rising by approximately 30 percent since 2006. The Raiffeisen pension fund’s yield was 6.9 percent last year and 7.85 percent since the start of operation. The industry average was 6.8 percent last year and 7.6 percent since the start.
The current contribution for the second pension pillar is only 5 percent of the gross salary and pension funds have been warning for some time that it is necessary to raise this rate in order to secure decent pensions for their clients.