Pension fund mergers and acquisitions expected in fall

The first mergers and acquisitions among pension funds could come as early as this fall. As of August, the sale of OFE Norwich Union and OFE Epoka are expected to be finalized while cooperation talks between Arka-Invesco, Winterthur and Pocztylion are ongoing. The Pension Fund Supervisory Office (UNFE) still maintains that Poland requires more pension funds as that would ensure competition and transparency in the sector. Smaller funds, however, are urgently seeking partners as losses continue to accumulate each month. According to UNFE, 360,000 is the minimum number of subscribers that can guarantee the fund of breaking even within five years from its creation. However, only seven of the existing pension funds can boast such numbers and the smaller funds have serious solvency problems. (Parkiet, page 1) S.M.