Slovak funds see turnaround in Q3
SLOVAKIA - Slovak funds have further strengthened their positive return base for 2009 thanks to a 0.6% investment return in the third quarter, according to data published by ADSS, the pension fund organisation .
Funds were left with negative returns for the second quarter as regulatory requirements, including lower fees and a new benchmark, had to be fulfilled by July and dragged potential returns downwards. (See earlier IPE story: Slovak funds down amid ‘dramatic changes’)
Since July, Slovak pension funds - similar to their Czech counterparts - have had to guarantee a positive return over a six-month period on all portfolios.
Should the return be negative, the balance has to be made up from a buffer fund or from the company’s assets.
Managed assets in the mandatory system grew from €2.23 at the end of 2008 to €2.7bn by the end of September 2009.
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