Polish OFE pension funds gained 53 bps of Polish equity allocation in July, the fourth month of consecutive increase since allocations crashed with the market in March, data from the market regulator KNF indicated.
The cash pile came down by 4.6% or PLN 465 mln with declines visible for 7 of 10 funds. The group cash allocation of 7.4% is now a low dating back to end-January 2020.
Generali OFE accounted for nearly half of the take-down in cash and has now cut its cash allocation by 535 bps in two months. Generali has added 498 bps to its equity allocation in the period, including 501 bps to its Polish equity allocation. Since the March crash, equity allocation is up 858 bps.
PZU OFE extended its sector-beating equity allocation by a heady 150 bps to 88.4% despite a 1.3% monthly decline for the overall equity book. The Polish equity allocation rose 101 bps on a 1.7% decline for the book; the foreign allocation rose 49 bps on a 1.2% gain for book value.
Polish OFE pension funds had been under the gun to align portfolios for a mass transfer to the state, initially slated for late in 2020. Policy makers still plan to hand the funds over to savers after taking a 15% fee to convert pre-tax moneys to a post-tax status, but have admitted the need to delay those plans in light of the coronavirus-driven market panic.
