Austrian Pensionskassen have strengthened their capital market holdings returning 4% on investments in the first half of this year, according to a report published today by the Financial Market Authority (FMA).

Austrian occupational pension funds have increased their exposure to equities and bonds since 2023 with a geographical focus on the US and Europe, it added.

Only one Pensionkasse shows its bonds allocation lower now than in Q4 2022, and only one Pensionskasse increased its equities allocation by more than 20 percentage points, the Authority said without naming the pension funds in question.

The Pensionskassen invest 36.9% of total assets in equities, and 36.6% in bonds. With a total of 22%, government bonds make up the largest share in the schemes’ overall portfolio, while investments in corporate bonds have been declining since 2021 to 9% on average, FMA said.

Investments in domestic equities and bonds, is weak, standing at less than 3% of an overall portfolio, it added.

The Authority also noted that 95% of total assets are invested in investment funds, including 26.6% in equities, 26.1% in bonds, 18.1% in mixed funds, 8% in real estate, and 6.3% in alternatives.

The schemes invest more than a fifth of their total assets in unlisted investments including real estate and loans, according to FMA.

Derivatives also play an important role, and, according to current data, the Pensionskassen’s liquid asset ratio, calculated using the new method established by the European Insurance and Occupational Pensions Authority (EIOPA), is higher than that of insurance companies (49.9% vs 44.8%), the report added.

Assets under management went up by 8%, from €26.7bn at the end of last year to €27.6bn at the end of June, it added.

Almost a fifth, around 18%, of assets are held in defined benefit (DB) plans, and 82% in defined contribution (DC) or hybrid pension plans, the authority added. The largest Pensionskassen in terms of assets are VBV, Valida and APK.

The latest digital edition of IPE’s magazine is now available

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

More from Luigi Serenelli

Topics