PTE PZU – activities in the pension funds market

At the end of 2015, the net asset value of open-end pension funds was PLN 140.5 billion, down 5.7% with respect to the end of the previous year.

Market situation

At the end of 2015, the net asset value of open-end pension funds was PLN 140.5 billion, down 5.7% with respect to the end of the previous year.

Activities of PTE PZU

The PZU Złota Jesień Open-End Pension Fund is one of the largest pension funds in Poland. At the end of 2015, OFE PZU was the third largest pension fund, both in terms of the number of members and net asset value.

OFE PZU Złota Jesień (Open Pension Fund, OPF), which is managed by PTE PZU SA (PTE PZU), is one of the largest players on the pension funds market in Poland. At the end of 2015, OFE PZU was the third largest pension fund, both in terms of the number of members, as well as in terms of net asset value:

  • the Fund had 2,208.4 thousand members, i.e. 13.4% of all participants of open pension funds;
  • net assets were at the level of PLN 18.5 billion, or, in other words, they represented 13.2% of the total value of assets of the open pension funds operating in Poland.

Open Pension Funds — share in assets as at 31.12.2015 (%)

Source: PFSA, Monthly data on OPF market, December 2015

The Social Insurance Institution (ZUS) transferred PLN 295.7 million in premiums to OFE PZU in 2015, which was 70.2% less than in the previous year. The premium level dropped mainly due to introduction of premiums voluntary payment to open pension funds resulting from the changes introduced in 2014 (the Act as of 6 December 2013 amending certain other acts concerning the purpose of defining the principles of pension payouts from funds gathered in open pension funds). At the end of 2015, Dobrowolny Fundusz Emerytalny PZU (PZU Voluntary Pension Fund) held 56.8 thousand IKZE accounts, which held assets worth PLN 14.3 million. As a result, it maintained its position as one of the leaders in the voluntary pension funds segment. The 2015 rate of return was 9.1%.

Factors, including risks and dangers, which will impact the activities of pension funds in 2016

The main challenges for the pension funds market in 2016 are:

  • reform of the pension system in Poland and the outflow of funds from OPFs;
  • so-called transfer window, which is the period between 1 April and 31 July 2016 open to filing of declarations concerning the continuation of premium payment to ZUS or payment to OPFs and ZUS;
  • economic climate on the capital market and, in particular on the WSE, affecting the value of the assets of open pension funds and the level of management fees collected by PTEs.