An average return of 1.79 per cent was achieved in the third quarter (Q3) of 2020 by Austria’s occupational pension funds, according to analysis by Mercer.

However, the total return over the year is still negative due to the losses in the first quarter (Q1). At the end of September Pensionskassens had an average loss of -2.84 per cent.

After suffering losses in March, the funds have performed well, with only September delivering a negative return.

Mercer said that 2020 is a challenging year in terms of assessment, and the remainder of the year will still see increased risk for financial markets due to the pandemic.

“It is therefore important for pension funds to develop a functioning risk management system and sufficient diversification of their portfolios,” Mercer Austria company pension schemes expert, Michaela Plank.

In addition, Plank highlighted the pension funds’ work on sustainable investing.

“As of 31 December 2019, Austrian pension funds have invested more than €15bn on a sustainable basis - in accordance with the recognised standards of the Principles for Responsible Investment of the United Nations. That is around 61.5 per cent of the total volume.

"The focus on a climate-neutral investment will continue accordingly in the pension fund landscape in the coming years. "

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