Assets under management (AUM) of Austrian pension funds saw an uptick in the last quarter of 2022, increasing by €11.56m or by 0.05% compared with the previous quarter to €24.35bn, according to a report by the Financial Market Authority (FMA) published last week.
AUM fell by €2.63bn or 9.75% year-on-year in 2022, as the Russian war against Ukraine hit financial markets, the report added.
While the amount of total assets progressed for the country’s five multi-employer schemes, or überbetriebliche Pensionskassen, quarter-on-quarter in Q4 by 0.16% to €22.24bn, the amount held by the three company pensions fell by 1.2% during the period to €2.10bn.
The multi-employer schemes and company pension funds operating in Austria invest the largest asset allocation in bonds (31.71%) and in equities (36.82%), while 13.12% is invested in other types of investments, 8.74% in deposits held by financial institutions, 7.11% in real estate, and 2.50% in credit and loans.
Close to 29.15% of total assets are invested in foreign currencies and 96.38% of pension funds’s assets are held in investment funds. Pensionskasssen directly hold assets invested in loans and credits, and held-to-maturity bonds.
In the last quarter of 2022, Austrian pension funds cut allocations to bonds by 0.18%, to real estate by 0.11% and to other types of investments by 0.58%, while increasing investments in credit by 0.49%, in equities by 0.22% and in deposits by financial institutions by 0.16%, according to the report.
Market volatility last year led to pension funds’ overall negative performance (-9.68%), compared with a positive 9.68% in 2021. The performance was positive in the past five and 10 years, at 1.08% and 3.08%, respectively.
The assets are managed by pension funds through so-called collective assessment and risk management institutions, catering for at least 1,000 beneficiaries, as special assets protected in the case of bankruptcy of a pension fund.
The number of pension funds’ beneficiary members has increased in the fourth quarter of last year to 1.04 million, up 1.14% or 137,000, including a 13.14% share of the total already receiving pension benefits.