The assets managed by the eight Austrian occupational provision funds (OPFs) stood at € 18.7 billion at the end of 2023. The amount increased by € 2.08 million or 12.53% compared with the previous year. This was due on the one hand to an investment performance of +4.42%, and on the other hand due to increased amount of contribution payments, not least due to the number of entitlements, which rose by around 400,000 (+3.9%). The average yield in the past ten years has been +1.47% p.a. The number of beneficiaries (entitled) (including multiple benefits at multiple OPFs) rose to 10.9 million during the reporting year, compared with 10.5 million at the end of 2022. As of 31.12.2023, the average entitlement amount stood at approximately € 1,710. These are the findings on the FMA’s Annual Report on Occupational Provision Funds for 2023 that was published today.
Investment strategy based on security and liquidity
The obligatory capital guarantee combined with fluctuating payment requirements in line with the development of the employment market, also by law, require an investment policy that pays particular attention to security and liquidity. As of the end of 2023, occupational provision funds primarily invested their assets managed in debt securities (64.59%), cash at banks (7.29%), shares (13.19%), real estate (6.28%) as well as loans and credits (5.09%), with the remaining amount (3.56%) in other assets. In comparison with 2022, the material changes in the investment policy during the reporting year were observed in cash at banks (-5.25%) and investments in debt securities (+2.95%) and in shares (+2.76%). BVKs are required to form a capital guarantee reserve to cover the guarantee prescribed under law on the paid-up capital. At the end of 2023, depending on the OPF they stood between 0.61% and 1.13% of the total amount of entitlements, or 0.87% on average.
The “2023 Annual Report on Occupation Provision Funds” „Jahresbericht 2023 Betriebliche Vorsorgekassen“ can be found on the FMA website (in German only) at: https://www.fma.gv.at/betriebliche-vorsorgekassen/quartalsberichte/