Investment Rules

Investment terms exist for every investment group (IG) of corporate provision companies that define, inter alia, the legal relationship of the entitled beneficiaries to the corporate provision company and the custodian bank. The investment terms are required to be approved by the corporate provision company’s supervisory board, the custodian bank and authorised by the Austrian Financial Market Authority (FMA). Minimum contents are defined in the Federal Act on Corporate Staff and Self-Employment Provision (BMSVG; Betriebliches Mitarbeiter- und Selbstständigenvorsorgegesetz). The investment terms are required to remaining within the quantitative boundaries for investments defined by the BMSVG.

The BMSVG stipulates that the corporate provision company shall conduct its corporate provision company business in the interest of the entitled beneficiaries, paying particular attention to the security, profitability and liquid funds requirements, as well as ensuring an appropriate mix and diversification and to ecological, social and governance criteria, taking into account the risks associated with the investment.

Corporate provision companies have had a constant asset allocation in recent years.