László Windisch (photo: Tamás Kovács / MTI)

Windisch said the share of domestic stocks in voluntary funds is extremely low, at around 3.4%, and the total share of stocks also stands at only 5.8%. He noted that the share of government bonds in pension fund portfolios is 58%, and as high as 70% when adding bond funds.

In EU and EEA countries, by comparison, the share of government bonds in pension portfolios is only 30% and the share of stocks is 32%, Windisch noted.

The deputy governor argued for partially overhauling regulations and establishing a guarantee fund for pension funds to secure membersʼ savings. The MNB proposes offering guarantees to individual members of up to HUF 30 million of their savings, he added.

The central bank is also suggesting that voluntary funds divide their members into separate portfolios based on their age, like private pension funds, and put younger members in funds with higher risks. The supervisory arm of the MNB will monitor pension fundsʼ investment activities daily from next year, Windisch added.