Pension provider Bonus, a division of the Zurich and Generali insurance group, has agreed to acquire the pension fund (VV-PK) and provident fund (VV-VK) of the Victoria-Volksbanken Group.

The Volksbanken group had put its pension fund, with around €660m in assets, and its provident fund, managing €224m in severance pay funds, up for sale.

How many domestic or foreign providers bid for the two funds, co-owned by the German Ergo insurance group, remains unclear.

As reported by IPE, the provident fund provider fair-finance showed public interest in purchasing both the VV-VK and the VV-PK to gain a foothold in the market.

The Bonus Pensionskasse, with €472m in assets under management (AUM), has now increased its AUM by 120% with the deal.

The larger provident fund, managing €500m in mandatory severance pay assets, will grow by 50%.

Bonus is the only provider in the second-pillar pension system where a provident fund and one of the portfolios in its Pensionskasse have been SRI certified by the Austrian Society for the Environment and Technology (ÖGUT).

Meanwhile, the Austrian pension fund association (FVPK) reported an average return for the first half of 2015 of 4.25%.

The VV-PK purchase brings the total number of Austrian pension funds down to 13, with just over €20bn in AUM.

The number of provident funds decreased to nine, with more than €6bn in assets.