2022 was a tough year for pension funds as they reported a steep drop in yields, in response to the slowdown in the economy and financial markets, even as writings continued to grow. This is what emerges from the annual report of Covipthe Supervisory Commission on this supplementary form.
Decline in yields
In 2022, the results of the complementary forms were affected by the drop in share prices and the rise in nominal interest rates, which in turn led to a drop in bond prices. Therefore, net returns were negative a -9,8% for traded funds and a -10,7% for open funds; and even to -11,5% in branch III PIPs. For branch I separate management, which accounts for assets at historical cost and not at market values and whose returns largely depend on the coupons collected on the securities held, the result was equal to 1.1 per cent.
By assessing returns over time horizons more specific to pension savings, in the ten years from the beginning of 2013 to the end of 2022the average annual compound return, net of management costs and taxes, stood at 2.2% for traded funds, 2.5% for open-ended funds, 2.9% for branch PIPs III and 2% for class I management. In the same period, the revaluation of the severance indemnity was equal to 2.4% per year.
As for the existing positions, at the end of 2022 there were 10.3 million, up by 564,000 units (+5.8%) compared to the end of 2021. These positions, which also include those of those who simultaneously adhere to several forms, matches a total membership of 9.2 million (+5,4%).
In the trading funds there were 349,000 more positions than at the end of the previous year (+10.1%), for a total of 3.806 million, still benefiting from the contribution of contractual adhesions (200 thousand) including those of newly hired public employees (80 thousand more). In market pension schemes, there are 106,000 more positions in open funds (+6.1%) and 84,000 more positions in
more in the “new” PIPs (+2.3%); at the end of December, the total outstanding positions in these forms amounted, respectively, to 1.842 million and 3.697 million units.
Resources allocated to services had fallen to 205 billion euros at the end of December 2022 (-3.6%) due to capital account losses (-7.7 billion) determined by the performance of the financial markets. In traded funds, net assets are 61 billion euro, in open funds 28 billion and in “new” PIPs 45 billion.
During 2022, the contributions collected from contractual funds, open-ended funds and PIPs amounted to 13.9 billion euros (+4.2 percent compared to 2021). The increase is found in all pension schemes, ranging from 4.5 per cent for negotiated funds, to 7.8 per cent for open funds, to 2 per cent for PIPs.
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