BCR Pensii, the manager of a private mandatory pension fund set to merge with Omniasig fund, could announce a new acquisition by the end of this year's first quarter, states Simona Ditescu, general manager of the company.
The BCR-Omniasig merger was the first such move on the private pension market, with the value of the deal revolving around 11m euros. "We're seeking further acquisitions, though our number of customers allows us to survive on the market. We'll probably announce something in March or even sooner," says Ditescu, 32. She has been running the pension company since it was set up, in 2007, and had worked in the banking system with ABN Amro (the current RBS Romania) and Citi before that.
Most likely, BCR Pensii is negotiating the takeover of one of the small funds on the market, with less than 50,000 customers. The main acquisition targets are OTP (19,235 clients), KD (6,705) and Prima Pensie (15,828) funds, with too few participants to hold out on this market.
"By strengthening our market foothold, we'll become stronger and generate better investment results. This year will see small funds start exiting the market as no shareholder can afford injecting money at this time in a pension business with less than 50,000 customers," explains Ditescu.
BCR Pensii now has over 129,000 participants and expects to step into the black in 2012 and recoup the initial investments in the company by 2015. This plan is valid only in case the legislation stipulating a rise in the contributions paid by fund clients by 0.5% per annum, to 6% in 8 years remains unchanged. "(...) Should contributions not go up, the situation will change dramatically and we'll probably recoup our investments in 20 years," Ditescu maintains.
She says pension managers generate revenues only from fees and that there is a huge difference between the fee levied for a 2% contribution and a 6% one. "Keeping contributions unchanged is the worst scenario that could materialise this year in the sector of private pensions. Compounded by rising unemployment and stagnating wages, this could lead to a slight decrease in funds' monthly revenues. I don't believe the worst is over in terms of the financial crisis. A difficult year lies ahead for us," Ditescu also said.
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