Euro area pension fund statistics: third quarter of 2020

Statistical release

5 January 2021

Euro area pension fund statistics: third quarter of 2020

• Total assetsof euro area pension funds amounted to €3,019 billion in third quarter of 2020, €70 billion higher than in second quarter of 2020
• Total pension entitlementsof euro area pension funds rose to €2,741 billion in third quarter of 2020, up €21 billion from second quarter of 2020

Total assetsof euro area pension funds increased to €3,019 billion in the third quarter of 2020, from €2,949 billion in the second quarter of 2020. Investment fund shares accounted for 45.7% of the pension funds sector's total assets in the third quarter of 2020. The second largest category of holdings was debt securities (25.6%), followed by equity (8.7%) (see respective transactions in Chart 1).

Holdings of investment fund sharesincreased to €1,380 billion at the end of the third quarter of 2020 from €1,324 billion at the end of the previous quarter. Net purchases of investment fund shares amounted to €29 billion in the third quarter of 2020, while price and other changes amounted to €27 billion. Looking at the main type of investment fund shares, equity fund shares totalled €415 billion, with net purchases of €3 billion.

Turning to pension funds' holdings of debt securities, these increased to €774 billion at the end of the third quarter of 2020 from €749 billion at the end of the previous quarter. Net purchases of debt securities amounted to €21 billion in the third quarter of 2020, while price and other changes amounted to €4 billion. Looking at equityon the assets side, euro area pension funds' holdings increased marginally to €264 billion at the end of the third quarter of 2020, from €263 billion at the end

European Central Bank

Directorate General Statistics

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Statistical information request, website:www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Statistical release / 5 January 2021

Euro area pension fund statistics: third quarter of 2020

of the previous quarter. Net purchases of equity stood at €5 billion in the third quarter of 2020, while price and other changes stood at -€4 billion.

Chart 1

Transactions in main assets of euro area pension funds in the third quarter of 2020

(quarterly transactions in EUR billions; not seasonally adjusted)

Data for main assets of euro area pension funds

In terms of the main liabilities, total pension entitlementsof pension funds amounted to €2,741 billion in the third quarter of 2020, up from €2,720 billion in the second quarter of 2020. Defined benefit pension schemes amounted to €2,294 billion, accounting for 83.7% of total pension entitlements.

European Central Bank

Directorate General Statistics

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany

Statistical information request, website:www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Statistical release / 5 January 2021

Euro area pension fund statistics: third quarter of 2020

Defined contribution pension schemes totalled €447 billion, accounting for 16.3% of total pension entitlements in the third quarter of 2020. Net purchases of defined benefit schemes amounted to €14 billion in the third quarter of 2020, while those of defined contribution schemes came to €1 billion. Price and other changes of total pension entitlements amounted to €6 billion.

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Notes:

"Defined benefit schemes" includes hybrid schemes.

"Investment funds" includes money market funds and non-money market funds.

Hyperlinks in the main body of the statistical release and in the annex table lead to data that may change with subsequent releases as a result of revisions. Figures shown in the annex table are a snapshot of the data as at the time of the current release.

European Central Bank Directorate General Statistics

Sonnemannstrasse 20, 60314 Frankfurt am Main, Germany Statistical information request, website: www.ecb.europa.eu

Reproduction is permitted provided that the source is acknowledged.

Table 1. Assets and liabilities of euro area pension funds

(EUR billions; amounts outstanding at end of period; transactions during the period)1)

	Q1 2020	Q2 2020	Q3 2020
TOTAL ASSETS/LIABILITIES	2,779	2,949	3,019
ASSETS
Currency and deposits	144	138	141
of which: Transferable deposits	54	51	54
Loans	85	91	77
Debt securities	717	749	774
Equity	229	263	264
Investment fund shares	1,239	1,324	1,380
Money market funds	36	36	37
Non-money market funds	1,203	1,287	1,343
Bond funds	255	262	260
Equity funds	350	404	415
Mixed funds	189	202	226
Real estate funds	148	150	153
Hedge funds	21	20	14
Other funds	242	250	275
Pension fund reserves 2)	109	114	118
Financial derivatives	189	207	204
Non-financial assets	37	36	36
Remaining assets	28	27	26
LIABILITIES
Loans	83	94	95
Debt securities issued	0	0	0
Equity	22	23	23
Technical reserves 3)	2,631	2,736	2,757
of which: Pension entitlements	2,617	2,720	2,741
Defined benefit schemes 4)	2,198	2,278	2,294
Defined contribution schemes	419	441	447
Financial derivatives	93	93	97
Remaining liabilities	57	54	58
Net worth 5)	-107	-50	-12
SELECTED TRANSACTIONS - ASSETS
Loans	5	5	-14
Debt securities	1	17	21
Equity	-2	5	5
Investment fund shares	16	13	29
Money market funds	6	0	0
Non-money market funds	9	13	28
Bond funds	18	-7	-6
Equity funds	-35	27	3
Mixed funds	-25	3	19
Real estate funds	1	-4	0
Hedge funds	-7	-2	-7
Other funds	57	-4	19

Source: ECB.

1. Figures may not add up due to rounding.
2. Total pension fund reserves may include investments in insurance policies.
3. Total technical reserves may include life insurance.
4. Defined benefit schemes include hybrid schemes.
5. Balancing item as defined in ESA 2010. In a defined benefit pension scheme, the level of pension benefits promised to participating employees is determined by a formula agreed in advance. The liabilities of a defined benefit pension scheme are equal to the present value of the promised benefits, and therefore in a defined benefit pension scheme net worth can be different from zero.

Euro area pension funds statistics - Statistical release, January 2021

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