Polish open-ended pension fund (OFE) assets hit a record high of PLN 372.5bn at the end of September, according to analysis from Analizy.

This represented a 2.4 per cent increase from the PLN 363.7bn recorded at the end of August.

Analizy described September as a “good month” for OFEs, which generated an average return of 2.9 per cent, with all eight funds ending the month with positive returns.

This was primarily driven by the strong performance of the Warsaw Stock Exchange (GPW), although gains were heavily concentrated among the largest companies.

More than 80 per cent of the OFEs’ assets were invested in Polish company equities, which worked in their favour.

The gap between the best and worst performing OFEs was just 0.8 percentage points, with PKO BP Bankowy OFE performing the best with a return of 3.1 per cent and Allianz Polska OFE retuning 2.3 per cent.

Since the beginning of the year, the average OFE return has risen to 30.6 per cent.

"In this context, it is worth recalling what investment risk actually is. In both theory and market practice, it simply means volatility - the fact that the actual result may differ from the expected value,” commented Chamber of Pension Fund Societies president, Małgorzata Rusewicz.

"This encompasses not only losses or zero returns and profits lower than projected, but also gains significantly exceeding expectations. We are currently seeing the latter scenario.

"However, risk should be viewed through the lens of a specific investment horizon rather than by placing undue emphasis on short-term volatility.”

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