NN Investment Partners TFI eyes 8% share in PPK market

Fund manager NN Investment Partners TFI hopes to reach 8 percent share in the market of employer-sponsored pension schemes PPK and expects it to bring profits within 4-6 years from its launch, the TFI CEO Małgorzata Barska said. “We assume inflows to such products to reach PLN 15-20 billion annually, we’re hoping our inflows will reach PLN 1 billion,” she added. NN TFI proposes abolishing the PLN 1 monthly fee for each participant of the scheme and lowering the contribution for the portal un by the state-run Polish Development Fund to 5 bps, from the currently proposed 10 bps. NN Investment Partners has over PLN 2.5 billion in assets under pension security programs, of which over PLN 1.6 billion are PPE assets. The fund ranks second in Poland in terms of the number of registered PPE. The new program seeks to have firms and employees put a total of 3.5 percent of gross wages into privately managed Employee Pension Plans (PPK) – 1.5 percent from the employer and 2 percent from the employee. Additionally, the state will add PLN 240 per year to each account on top of the PLN 250 start-up bonus, which according to calculations will cost the budget PLN 1.1 billion in 2019, and PLN 2.5-3 billion afterward. In total, some 11.4 million employees would automatically become members of the opt-out system.