Austrian Pensionskassen have recorded a 5.25% reduction in assets under management in Q2 this year to a total of €24.61bn, compared with €25.97bn in Q1, according to the latest quarterly report published by supervisory authority FMA.

The assets are managed by eight occupational pensions providers, five multi-employer schemes, or überbetriebliche Pensionskassen, and three company pensions.

The five multi-employer schemes manage the largest part of the assets for the pension funds in Austria, €22.48bn, and the company pension schemes hold the remaining €2.11bn.

The assets managed by the company pension schemes amounted to around 6.69% of the Austrian GDP of € 403bn at the end of 2021.

The pension funds recorded returns of -8.78% in the first six months of 2022, and -5.2% in the second quarter. They achieved an average annual performance of 3.71% over the last 10 years, the FMA said.

Austrian Pensionskassen allocate the largest amount of assets to equities (36.95%), followed by bonds with 31.59%, financial institution credits with 9.14%, real estate at 6.90%, loans and credits with 1.71%, and other assets at 13.71%.

The pension schemes have reduced quarter-on-quarter allocations to fixed income, that in Q1 stood at 32.24%, and equities that in Q1 amounted to 39.02%, while increasing allocations to real estate that in Q1 totaled 6.34%, and loans and credits, 1.31% in Q1.

In the same period last year Austrian pension funds invested 39.44% of their assets in equities, 34.24% in bonds, 6.89% in financial institution credits, 5.28% in real estate, 0.80% in loans and credits and 13.29% in other assets.

Approximately 95.85% of the pension funds’ assets is managed indirectly via investment funds. Directly held assets include loans and credits, and held-to-maturity bonds, according to the FMA.

The Pensionskassen have currently around 1.03 million members, including 12.81% already receiving pension benefits. This corresponds to an increase in the number of members of 0.32% quarter-on-quarter in Q2, and 132,000 people already receive company pensions.

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Luigi is IPE's Berlin-based DACH correspondent. His coverage includes regulation and the latest pensions and investments trends, and, being a native Italian, he also covers Italy’s pensions market. He has reported from Italy and Germany on international politics and business for European and US publications including USA Today, Bloomberg BNA and for the investigative magazine L’Espresso. He was previously Germany correspondent for Mergermarket covering M&A.View full Profile

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