Poland’s open pension funds (OFE) saw their assets reach a record PLN 354.9bn at the end of July.

The figures, published by Polish financial analysis provider Analizy Online in its latest Pension Fund Market Summary, showed that Poland’s OFEs generated an average return of 6.1 per cent in July.

The funds form the funded second pillar of Poland’s pension system and invest pension contributions in financial markets.

The strong performance came against a backdrop of robust gains on the Warsaw Stock Exchange, with the WIG20 rising 9.3 per cent and the broader WIG index gaining 8.7 per cent during July.

More than 80 per cent of OFE assets are invested in shares of domestic companies, meaning the funds’ performance is closely linked to the Polish equity market.

Allianz Polska OFE delivered the strongest return in July at 6.7 per cent, followed by OFE PZU ‘Złota Jesień’ at 6.6 per cent, while Vienna OFE and UNIQA OFE each returned 6.3 per cent. PKO BP Bankowy OFE recorded the weakest monthly performance at 4.9 per cent.

Since the beginning of the year, OFEs have generated an average return of 23.4 per cent, led by PKO BP Bankowy OFE at 26.6 per cent. Nationale-Nederlanden OFE followed with a return of 24 per cent, while OFE PZU ‘Złota Jesień’ returned 23.4 per cent.

OFE assets increased by almost PLN 20bn to reach the record PLN 354.9bn at the end of the month, despite the impact of Poland’s ‘slider’ mechanism, which transfers part of pension contributions to the Social Insurance Institution (ZUS) during the 10 years before retirement.

OFE transferred PLN 1.41bn to ZUS in July through the ‘slider’ mechanism, while receiving just under PLN 420m in contributions from the institution. Nationale-Nederlanden OFE remained the largest fund, with PLN 98.8bn in assets and a 27.8 per cent market share, followed by Allianz Polska OFE with PLN 88.5bn and a 24.9 per cent share.

Polish Chamber of Commerce of Pension Companies (IGTE) president, Małgorzata Rusewicz, said the results demonstrated the potential of Poland’s capital market.

She stated: “This is the result of favourable conditions on the Warsaw Stock Exchange, sound investment decisions by managers and a long-term investment approach. Individual investors will soon also be able to benefit more easily from the potential of the domestic market.

“The Act on Personal Investment Accounts (OKI) has been passed and is awaiting the President’s signature. If it enters into force at the beginning of 2027, investors will be able to invest up to PLN 100,000 without paying the ‘Belka tax’, with tax on investment assets only becoming applicable once this threshold is exceeded.

She added that the OKI scheme could help investors build significant portfolios on preferential tax terms, while encouraging a stronger investment culture, supporting long-term capital formation and increasing individual investor participation in Polish companies.

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