Yield of Armenian pension funds decreased, but experts expect growth

YEREVAN, July 29. /ARKA/. In the first six months of 2022, Armenian funded pension funds recorded a negative result in terms of yield, Deputy Executive Director of Amundi-ACBA Asset Management and coordinator of the funds Hrayr Aslanyan said at a press conference on Friday.

“In the case of our funds, the drop fluctuates between -5% and -10%. The first factor that contributed to this negative result is the revaluation of Armenia’s national currency against the US dollar and euro, as well as inflationary pressures,” he said.

Aslanyan drew attention to the fact that this negative result was recorded in the first half of this year. According to him, the total yield of pension funds continues to remain fairly high. “In particular, the average annual yield is 6.8% – 7%, depending on the type of the fund,” he said.

The future is quite uncertain, he said, so it is necessary to diversify the portfolio and try to anticipate different risks.

Isabella Adilkhanyan, chief financial and operational director of C-QUADRAT Ampega Asset Management Armenia, said, in turn, that in three months the negative result was 4.9-9.2%, depending on the type of the fund.

“In the long term, capital markets tend to recover. Our seven-year and global experience show that the main crisis situations that happened recovered over time. We are in another difficult period, which in the long run has a great opportunity for recovery,” she stressed.

Armenia fully switched to funded pension system on July 1, 2018. It was first introduced in Armenia on January 1, 2014 and is mandatory for all working citizens born after January 1, 1974.

The pension funds are managed by C-QUADRAT Ampega Asset Management Armenia and AMUNDI-ACBA ASSET MANAGEMENT.

C-Quadrat Ampega Asset Management Armenia LLC is a joint venture between C-Quadrat Investment AG, Vienna, Austria, and Ampega Asset Management GmbH, Cologne, Germany.

AMUNDY-ACBA ASSET MANAGEMENT was founded by ACBA Credit Agricole Bank and French Amundi, Europe’s largest asset management company. -0-

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