Austrian pension funds have increased their exposure to bonds during 2023, while reducing the weight of equities in thier investment portfolios, according to figures published on Friday by the country’s Financial Market Authority (FMA).

Bonds account for 35.01% of pension fund assets invested in Q3 this year, up from 33.22% in Q2; while equities amount to 36.27% of the total assets under management (AUM) in the third quarter, down from 38.92% in the second quarter of the year.

Allocations to loans, real estate and other investments remained almost unchanged quarter-or-quarter at 2.88%, 6.88%, and 12.31%, respectively, the figures show.

Pension funds returned 1.88% in the first nine months of 2023, and -1.34% in the third quarter of the year. Over the last 10 years, Austrian pension schemes recorded average annual performances of 2.93%, it added.

The best performing month this year was January with almost 3% returns, the worst was September with close to -1.5%, the regulator said.

Austrian pension funds’s AUM decreased by 1.02% quarter-on-quarter in the third quarter of 2023 to €25.17bn. Assets managed by multi-employer pension funds fell by 1.04% quarter-on-quarter to €23.01bn, while assets of company pensions decreased by 0.87% to €2.15bn.

The number of people entitled to benefits increased slightly by 0.17% in Q3 compared to the previous quarter to approximately 1.05 million, with 143,000 people (13.52%) who already receive company pensions.

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