The average yield of the dynamic funds of the new pension fund (DPS) was 15 per cent at the end of November 2024 alone, offering clients more than good returns this year, the Association of Pension Companies of the Czech Republic (APS) has said.

In addition to this, APS found the best of the funds broke the 30 per cent annual return limit, the second time in the history of the new pension savings.

Commenting on this, APS spokesperson, Jan Sedláček, said: "So far, everything indicates that this year [2025] will be one of the most successful years in terms of pension yields.

“In the case of dynamic funds, the most important role was played by the positive development of world stock exchanges.

"These funds invest about 80 per cent in shares of major global players and stock indices. In the case of balanced funds, this was compounded by a well-developed bond market."

APS found balanced funds, which combine stocks and bonds and aim for moderate growth at lower risk, also brought “interesting” results this year.

The balanced funds are targeting the 10 per cent yield limit, as mandatory conservative funds achieved an average growth of 3.84 per cent by the end of November.

"People can look forward to the launch of so-called alternative funds, which will be able to invest, for example, in real estate, commodities or private equity,” Sedláček said.

“These funds will therefore be even bolder in nature and have the potential to deliver even higher returns in the long term than dynamic funds, of course at the cost of a higher risk of short-term declines.”

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