Polish pension funds' assets grow by 11% y/y to EUR 71.8bn at end of 2013

By bne IntelliNews January 6, 2014

The value of assets managed by Poland's 13 mandatory open pension funds (OFEs) decreased in December by 2.1% y/y (or PLN 6.5bn) m/m to PLN 299.27bn (EUR 71.8bn) at the end of the month, according to calculations of Analizy Online, which monitors the investment and pension fund market. In the entire 2013, these assets grew by nearly PLN 30bn, or 11% y/y.
In December, their value dropped due to the bearish sentiment on the equity markets: it was the worst December since 1994, analysts explained. Last month, the Warsaw bourse's widest index WIG lost 6.3% on the month, while blue-chip index WIG20 lost 7.1%.
In the entire year, though, the beginning of the economic revival pushed equity prices upwards: WIG gained 8.1%, but WIG20 lost 1.8%; however, the main beneficiaries were small- and mid-caps - their indexes grew by 37.3% and 31.1%, respectively.
Meanwhile, transfers of old-age contributions from the Social Security Board (ZUS) totalled PLN 0.8bn last month and PLN 10.5bn ytd.
It is worthwhile to recall that according to the recently passed legal changes, the pension funds will have to send 51.5% of their assets (calculated as on Jan 31 of 2014) to the Social Security Board (ZUS), where they will be written off. Thus, Poland's public debt will be cut by PLN 120-140bn (according to various estimates).
Poles will have four months after the changes take effect (instead of previously proposes three-month period) to choose whether they want to transfer their old-age pension contribution (proposed at 2.92% of gross wages vs. current 19.52%) to the fund or ZUS. If they make no decision, they will be transferred to ZUS by default.

Related Articles

Czech CPI buys huge Central European retail portfolio

Czech real estate investor CPI Group has bought a large portfolio of Central European retail assets, local media reported on January 17. The investor, which has grown its holdings rapidly since ... more

Speculation over a second downgrade grows as S&P drops outlook on Polish economy

Speculation that Poland could suffer a second downgrade of its sovereign rating at the end of the week intensified on January 10, as Standard & Poor’s lowered its estimates on economic growth. ... ... more

Polish government offers temporary olive branch in parliament standoff

Polish media were temporarily readmitted to parliament under the old lax rules on January 5. The ruling party Law and Justice (PiS) had sought to place restrictions on reporting in December, ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss