The Austrian Financial Market Authority (FMA) published its Report on the State of Corporate Provision Companies, showing that assets under management of Austria’s eight corporate provision companies reached a record EUR 21.1 billion at end-2024, up EUR 2.5 billion (13%) from end-2023, supported by contribution inflows and investment returns. The providers, which have administered the mandatory “Abfertigung neu” severance scheme since 2003, managed around 11.2 million benefit entitlements, a 2.8% year-on-year increase. Investment performance for 2024 was 4.7% (2023: 4.4%; 2022: -7.7%); portfolios were primarily invested in debt securities (65%) and equities (15%), with holdings in cash at banks (5.0%), real estate (5.6%), loans and credits (5.4%) and other assets (3.3%). Capital guarantee reserves required to cover the statutory guarantee fluctuated between 0.65% and 1.20% of total benefit entitlements during the reporting quarter, averaging 0.90% versus 0.86% at end-2023.
Austria Financial Market Authority 2025-03-11
Austrian Financial Market Authority reports corporate provision companies’ assets rise 13% to EUR 21.1 billion at end-2024
The Austrian Financial Market Authority reported that assets under management for Austria's eight corporate provision companies reached a record EUR 21.1 billion at the end of 2024, a 13% increase from the previous year. The companies, managing the "Abfertigung neu" severance scheme, saw a 2.8% rise in benefit entitlements and achieved a 4.7% investment return for 2024. Portfolios were mainly invested in debt securities and equities, with capital guarantee reserves averaging 0.90% of benefit entitlements.