Profit of pension funds down Kc170m to Kc4.66bn in 2013


27.02.2014 16:47

Prague - The original pension funds which are now labelled as transformed had a Kc4.66bn profit last year, Kc170m lower than in 2012, according to info that the Association of Pension Funds (APF) made public on its website today.


Peníze, bankovky, česká měna, koruna, úspory - ilustrační foto. ČTK Zavoral Libor

These funds were already closed to new clients last year so the number of their clients is gradually falling.

PF Ceske pojistovny (PFCP) had a Kc1.37bn profit last year, PF AXA a Kc854m profit and PF Ceske sporitelny (PFCS) a Kc594m profit.

Profit of PF Komercni banky (PFKB) reached Kc484m, of CSOB PF Stabilita Kc517m, of ING PF Kc374m, of Allianz Kc367m and of Aegon Kc108m.

Expected yields will move between 2.09 percent by PFCP to 1.27 percent by PFCS.

At the end of last year, all these funds had 4.87 million clients in total, 280,000 fewer than at end-2012.

PFCP had the highest number of active clients at end-2013 (1.28 million), followed by PFCS with 994,000 clients and CSOB Stabilita with 684,000 clients.

PFCP managed the highest amount of client assets (Kc71.4bn), trailed by PFCS (Kc50.2bn) and PFKB (Kc35.8bn).

Over 70 percent of Czechs able to work participate in the system of voluntary private pension schemes.

Pension funds which receive state support have been operating in the Czech Republic since 1994. Out of the original 44 funds, only eight have remained on the market.

All the funds joined the new pension system which required them to establish pension companies and transform the current funds.

After one year of operations, the funds participation in the third pillar of the pension system had 91,000 clients at end-2013.

New private pension insurance contracts could be signed until November 30, 2012. As of January 2013, only contracts on supplementary pension insurance can be signed.

The new funds are different in particular in the need to pick an investment strategy. Also, new funds do not guarantee that a potential loss will not lower client savings. They will also not pay half of the saved money after 15 years of saving. On the other hand, they offer potential higher yields.

Number of active clients:

Aegon PF98,000101,000
PF Allianz479,000486,000
CSOB Stabilita684,000732,000
PF Ceske pojistovny1,278,0001,280,000
PF Ceske sporitelny994,0001,059,000
PF Komercni banky537,000571,000

Source: Association of Pension Funds (APF)

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