HUNGARY - The growth portfolios of the 19 mandatory Hungarian pension funds returned 25.95% over the last year with the average performance of all funds standing at 18.6%.

Figures released by the Hungarian pension fund association Stabilitas showed an average weighted performance for the conservative or 'classic' funds of 12.11%, balanced funds stood at 17.75% and growth funds at 25.95% - confirming earlier estimates. (See earlier IPE article: Hungarian pension funds return over 20%)

This brings the 10-year average performance - since 2000 - of classic funds to 7.22%, to 6.64% for balanced funds and 5.77% for growth portfolios.

Unweighted figures from the Hungarian supervisor PSZAF show an average 2009 performance of 18.1% with each of the three portfolios returning 11.45%, 17.42% and 25.62% on average respectively.

According to Stabilitas 78.6% of all assets are in the growth portfolios which can hold over 40% in equities and almost another 20% in the balanced portfolios with an equity exposure above 10%. (See earlier IPE article: Hungary: A case of bad timing)

Assets in the mandatory system increased to HUF2.5trn (€9.3bn) from HUF1.8trn at year-end 2008 and are now back at their 2007 level.

The eight companies offering voluntary pension funds posted an average return of 16.76%.