The yield of pension funds in the second quarter of 2022 fell by 8%, which was due to a drop in prices of Armenian and foreign bonds, as well as the strengthening of the dram against foreign currencies, David Khachatryan, RA Deputy Minister of Labor and Social Issues, told NEWS.am.

According to him, the strengthening of the dram has had the greatest impact.

"The biggest negative yield was recorded. In my case, the negative balance amounted to 521 thousand drams (over $1,000 - ed.)," he said.

The funded pension system has been in force for 8 years, and during this time, its average annual return, as the official said, was 7%.

The deputy minister said that the negative yield is not recorded for the first time: there have been similar cases before, in particular, in the 2nd and 3rd quarters of last year.

"Fund managers invest funds in different areas in order to diversify risks. More than 30% of our pension funds are investments in foreign currencies. It is important to keep in mind that as a result of changes in the exchange rate the opposite result may be recorded. There was a period when the dram was depreciating, and this increased the yield. In other words, it is impossible to evaluate the efficiency of the system based on one quarter or even one year. Besides, the pension funds in developed countries recorded a much higher negative rate of return. We will close the year with a positive return. But even if there is a negative return, it does not mean that the system needs to change or that there are threats. The issue of making changes in the system is not discussed, as we do not see the need for that," Khachatryan stressed.