The first three mandatory pension schemes (pillar II) have been given the green light from the Private Pensions Commission (CSSPP). What are the similarities and the differences between these new financial products?

All three products are quite similar in terms of their investment policy, risk profile and level of commission. However, despite these similarities, there are also certain details that differentiate the funds. The three products in question are ATZ Viitorul Tau (managed by Allianz-Tiriac Pensii Private), ING Fond de Pensii (managed by ING Fond de Pensii) and Pensia Viva (managed by Aviva Fond de Pensii).

All the three funds will place 70% of their clients' assets into low-risk instruments (government securities and foreign private bonds) and the remaining 30% into higher risk instruments (shares, other bonds, monetary market instruments and mutual funds). This ratio makes the three products medium-risk, according to CSSPP rankings.

The ING fund will invest 67% of its assets into government securities issued by the governments of Romania and other European countries, Allianz-Tiriac will invest 67.5% of its assets in these instruments, whilst Aviva's fund will only place 55% of its assets into the above mentioned instruments. The rest up to 70% will be investments allocated to sovereign securities issued by Japan, USA and Canada and foreign corporate bonds.

The 70%-30% ratio is only valid for the target portfolio, in case nothing out of the ordinary happens, on longer term. In addition, all three pension schemes stipulate a flexible investment strategy, which allows investments in various instruments to fluctuate between certain thresholds.

Although the funds want to allocate 70% of their assets to safer instruments, this share may rise to 85% (in case of Allianz-Tiriac) or even 90% (in case of ING and Aviva) if market co