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

Poland and Israel in diplomatic row over law penalising claims of complicity in Nazi crimes

Poland passed a bill on January 26 making it illegal to claim Poles or the Polish state were complicit in Nazi crimes during the Second World War, sparking an angry response from Israel, which ... more

Poland rescinds TVN’s fine

Poland’s National Broadcasting Council (KRRiT) has cancelled on January 10 its own decision to fine the US-owned media group TVN PLN1.48mn (€350,000) for covering protests against ... more

Poland’s PKN Orlen launches offer to delist Czechia’s Unipetrol

Poland’s state-controlled oil and gas company PKN Orlen has launched an offer to take over Czech refiner Unipetrol, the Polish company said on December 13. PKN Orlen said it will go through with ... more