After the period of a very fast growth during 2016-2017, total* assets under management in Poland decreased slightly in H1 2018 to PLN 627 billion. This was largely an effect of weaker performance of the local stock market in the first half of 2018 which translated into lower valuations of equity portfolios. The recent correction affected mostly 2nd pillar pension funds, which by law have to overweight equities. Other segments remained relatively stable thanks to new contributions offsetting weaker performance. As of June 2018, assets of regulated investment funds** reached PLN 297 billion, 3rd pillar pension assets exceeded PLN 23 billion and reserves of insurance companies stagnated at PLN 149*** billion. The asset management market remained medium-concentrated with top four groups: PZU, Aviva, NN and Ipopema managing roughly half of all assets in the market
Outlook
Assets under management in Poland are expected to sustain a solid growth through 2020. The most action is likely to take place within 3rd pillar pension funds since the new legal framework will mandate employers to enrol all employees and to finance contributions to employee plans. Also insurance assets and investment funds are likely to grow thanks to key driving forces: increasing wealth of individuals and low interest rates at banks.
* Across key categories: Investment funds, Insurance assets, Pension assets (2nd and 3rd pillar)
** Funds tracked by IZFiA
*** Technical reserves of non-life and life insurers, including unit-linked life funds
Investment funds and asset management market in Poland, 2018
