CORRELATION ANALIYSIS BETWEEN PERFORMANCES OF THE PRIVATELY MANAGED PENSION FUNDS AND THEIR ASSET INVESTMENT ALLOCATION IN ROMANIA

The main objective of this paper is to determine in what extent the performances of the privately managed pension funds in Romania, second pillar, are influenced by the investment allocation of their total net assets, in order to improve that performances. The research methodology consists in testing seven variables - as dependent variables, in relation with the average weighted rate of profit of all privately managed pension funds, second pillar – as independent variable, considering their investment allocation: bank deposits, government securities, municipal bonds, corporate bonds, supranational bonds, shares and undertakings for Collective Investment in Transferable Securities – UCITS, by means of the multiple linear regression method. The conclusion is that, for privately managed funds, the second pillar, there is a strong correlation between their average weighted rate of profit and the investment allocations of their assets. On a short-term time horizon, the performances of the privately managed pension funds are influenced negatively by the bank deposits, government securities, and supranational bonds and in a positive way by the municipal bonds, corporate bonds, shares and undertakings for Collective Investment in Transferable Securities – UCITS.