February 23, 2024
Funds

Austrian funds’ assets return to growth to total €205bn | News


Assets managed by Austrian funds grew by 2.4%, or €4.9bn, year-to-date to €205.01bn, compared with €200bn recorded last year, according to the latest report published by the Financial Market Authority (FMA).

The largest share of the assets (€111.4bn) is managed by Alternative Investment Funds (AIFs), up by 1.8%, or €2bn, year-to-date, while the remaining share is managed by Undertakings for the Collective Investment in Transferable Securities (UCITS), and is up by 3.2%, or €2.9bn, year-to-date, the report added.

The amount of assets managed by Austrian funds has, however, declined so far this year compared to €207.6bn recorded in H1 2023, and €230.6bn recorded at the end of 2021, FMA’s numbers showed.

Investments in bond funds increased the most this year by 5.3%, or €2.8bn, to total €55.5bn, alongside equity funds investments that grew by 7.1%, or €2.6bn, to €39.1bn, the report stated.

Real estate funds saw assets falling this year by 9%, or €1bn, to € 10.3bn. Short-term bond funds recorded 10.2%, or €500m, in asset outflows, while assets in private equity funds remained unchanged so far this year at €1.1bn, it said.

Cash inflows in bond funds stood at €1.9bn, in equity funds at €1.1bn, while investors pulled €1.1bn from real estate funds this year. Austrian funds have recorded net inflows of €1.6bn year-to-date, the report noted.

Funds taking sustainability aspects into account in their investment strategies, according to Article 8 or 9 of the Sustainable Finance Disclosure Regulation, accounted for over 45% of total Austrian fund assets as of the end of September, it said.

A stress test conducted this year by the FMA showed that pension funds’ investment portfolios would decrease by approximately 7.5% in a scenario where the price of CO2 emissions unexpectedly increased through additional taxes to make fossil fuel investments less attractive.

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