Austrian pensionskassens returned 2.01% in Q1 2021 – Mercer

An average return of 2.01 per cent was achieved in the first quarter (Q1) of 2021 by Austria’s occupational pension funds, according to analysis by Mercer.

Analysis by Mercer shows that APK and the BONUS pension funds took the two top spots. It said that the positive return was due to the markets being able to match the performance seen at the turn of the year.

“In summary, we saw a good start to the first quarter. Equities got off the starting blocks very well and are among the biggest winners of the quarter,” Mercer Austria head, Michaela Plank, said.

Bonds, which had fallen to an all-time low in the course of the pandemic and due to the highly expansive monetary policy of the central banks, remained largely at the low levels, she added. In March, however, an increase in yields for bonds with longer maturities was observed, beginning in the USA, although historically low levels can still be assumed.

Mercer said this has prompted the majority of pension funds to increase the proportion of private markets in their respective strategic orientations in 2021 in order to counteract the even longer period of low-interest rates.

For the next few months, the framework conditions for a good economic development are still favourable, whereby the development of the capital markets will also depend heavily on the American central banks, Mercer stated.

    Share Story:

Recent Stories


Podcast: The benefits of private equity in pension fund portfolios
The outbreak of the Covid-19 pandemic, in which stock markets have seen increased volatility, combined with global low interest rates has led to alternative asset classes rising in popularity. Private equity is one of the top runners in this category, and for good reason.

In this podcast, Munich Private Equity Partners Managing Director, Christopher Bär, chats to European Pensions Editor, Natalie Tuck, about the benefits private equity investments can bring to pension fund portfolios and the best approach to take.

Podcast - The power of three: Using Common Contractual Funds to improve tax outcomes for investors
Large asset owners are still investing in equities in a way where they are taxed on their income. The implication is that they get a poorer return. They need to, and can, improve this, but how?

In this podcast, AMX Head of Client and Manager Development, Aaron Overy, and AMX Product Tax Specialist, Kevin Duggan, discuss with European Pensions Editor, Natalie Tuck, about three options to help ensure good withholding tax outcomes for institutional investors.
Mitigating risk
BNP Paribas Asset Management’s head of pension solutions, Julien Halfon, discusses equity hedging with Laura Blows

Europe’s pensions challenges
Francesca Fabrizi meets Matti Leppälä, Secretary General and CEO of PensionsEurope, to discuss the key aims and objectives of the association today.