As of the end of the 1st quarter of 2024, Austria’s eight corporate provision funds (BVKs; Betriebliche Vorsorgekassen) managed assets of € 19.3 billion. This was an increase by € 654 million or 3.50% compared with year-end 2023. The investment performance for the full year in 2023 was +4.42%, and in the first quarter of 2024 alone +1.42%. The average yield in the past ten years has been +1.51% p.a. The number of entitled beneficiaries (including multiple beneficiaries from several BVKs) stood at 10.96 million during the reporting year (cf. 10.90 million at year-end 2023). The average amount of the entitlement stood at approximately € 1,761 as of 31.03.2024 (compared with € 1,607 as of 31.03.2023). These are the findings of the FMA’s report on the state of the corporate provision funds for the 1st Quarter of 2024 (“FMA-Bericht zur Lage der Betrieblichen Vorsorgekassen im 1.Quartal 2024“) which 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 at the end of Q1 2024, the corporate provision funds primarily invested their assets managed in debt securities (66.03%), shares (14.58%), real estate (5.90%), loans and credits (5.46%) as well as cash at banks (4.40%), with the remaining amount (3.63%) in other assets. The structure of the portfolio thereby by and large remained unchanged compared against the previous quarter, minor adjustments were only observed for cash at banks (-2.89 percentage points) in particular towards debt securities (+1.44 percentage points) and shares (+1.39 percentage points).
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 the reporting quarter, depending on the BVK, they stood between 0.61% and 1.11% of the total amount of entitlements, or 0.86% on average.
The full quarterly report for Q1 2024 for corporate provision funds can be found (in German only) on the FMA website at: https://www.fma.gv.at/betriebliche-vorsorgekassen/quartalsberichte/
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)