The Austrian Traded Index (ATX) was first published more than 30 years ago – specifically on May 13, 1991 – and has been the leading index of the Vienna Stock Exchange ever since. It contains the shares of the 20 largest listed companies in Austria and thus reflects the development and sentiment of the Austrian economy. Austrian state-owned companies are inextricably linked to Austria's economic development. Since the end of the Second World War in 1945/46, these companies have formed an essential part of the Austrian economy and, since 1991, of the ATX. Since its launch in 1991, only three companies – the two ÖBAG portfolio companies OMV and VERBUND*, as well as Wienerberger AG – have been continuously represented in the ATX. Between 2001 and 2022, a total of around 50 different companies were part of the index.
Composition of the ATX in light of the state holding
A look at the composition of the ATX over time demonstrates, on the one hand, the importance of "nationalized" companies for the capital market, and, on the other, the gradual privatization of state-owned companies via the stock exchange. Since 1987, numerous state-owned companies (both direct investments and ÖIAG investments) have been listed on the stock exchange, many of which also became (temporarily) part of the ATX. Others were privatized off-market and later listed as private companies (e.g., Austria Metall AG, AT & S AG).
The first IPO of an Austrian state-owned company was ÖMV AG in 1987, in which 15% of the shares were sold. In 1988, Austrian Airlines AG and Verbund AG went public. Further IPOs followed from 1992 onwards: Flughafen Wien AG (1992), VA Eisenbahnsysteme AG (1993), austriamicrosystems AG (1993), VA Technologie AG (1994), Böhler-Uddeholm AG (1995), VA Stahl AG ("voestalpine"; 1995), Bank Austria AG (1997/1998), and Austria Tabak AG (1997). The ÖIAG Act of 2000 granted ÖIAG a privatization mandate, according to which certain holdings were to be fully privatized. In the process, ÖIAG also acquired the Post- und Telekombeteiligungsgesellschaft (PTBG), and with it the shares in Telekom Austria, the Austrian Post, and the Postal Savings Bank. The IPOs of Telekom Austria and Post followed in 2000 and 2006, respectively. In February 2023, Telekom Austria's main shareholders (AMX and ÖBAG) decided to spin off the radio towers into a separate company while preserving ownership, which is to be listed on the Vienna Stock Exchange.
In 2001, the state still held stakes in nine of the 20 ATX companies (Austria Tabak, AUA, Böhler-Uddeholm, OMV, Telekom Austria, VA Technologie, Verbund, and voestalpine). At their peak, these companies accounted for more than 57% of the index weighting.
With the progression of privatizations, but also due to the temporary exclusion of some companies from the index, only three companies with state-owned shares remained in the ATX in 2006: OMV, Telekom, and Verbund, yet they still accounted for over 34% of the index weighting. With the IPO of Austrian Post at the end of 2006 and the temporary inclusion of Austrian Airlines, four and five, respectively, state-owned companies were represented by the end of 2009.
From the full privatization of Austrian Airlines at the end of 2009 until the beginning of 2021, four state-owned companies—OMV, Telekom, Verbund, and Post—remained consistently represented in the ATX. Their share during this period varied widely between 19% (2014) and 47% (2009).
In March 2021, Telekom was temporarily removed from the ATX due to its low free float. Nevertheless, the share of the three remaining companies with state participation rose to over 30% during 2022, largely due to the strong performance of Verbund shares in 2021 and 2022.
As part of our task of ensuring responsible and economically sound investment management, we continuously analyze developments on the capital markets, the sectors and peer groups of our portfolio companies as well as macroeconomic developments (further analyses and reports are here available).
An important aspect when considering companies with state participation is, of course, the dividend payments that are added to the state budget. A look at the dividend payments of ATX companies over the past 15 years demonstrates the dividend strength of companies with state participation. All companies included in the ATX in the respective year were taken into account.
Although only four companies (i.e., 20%) with state ownership were represented in the ATX during this period, their share of total dividends was always above 30% and averaged around 40%. After a general decline in 2015, dividend payouts by ATX companies increased continuously from 2015 to 2019. Dividend payouts by state-owned companies also increased in 2020 and 2021. The ECB's dividend cap on European banks for 2020 led to the postponement of dividend payments by Erste Group, RBI, and BAWAG to 2021. As a result, the dividend share of state-owned companies rose to around 54% in 2020. Of course, this analysis must also consider the different business models of the companies and industry specifics, especially with regard to dividend payouts. However, this would go beyond the scope of this article.
Conclusion
Responsible investment management means continuously and in-depth analysis of portfolio companies, their sectors and peer companies, as well as general economic developments. To this end, we at ÖBAG create dashboards that reflect these current developments in order to promote the long-term and sustainable positive development of portfolio companies in the spirit of patient capital access. This gives us a comprehensive understanding of the individual companies and their development in their respective sectors. When we examine the performance of the portfolio companies listed on the ATX over a longer period, we see that carefully planned investments pay off. VERBUND has thus succeeded in positioning itself as a successful, sustainable energy company. Together with OMV, the two are among the most important economic drivers in Austria. Their importance is also evident in the fact that OMV, VERBUND, and Austrian Post accounted for around 30% of the ATX during 2022. This reflects the portfolio companies' significant responsibility for Austria as a business location and for the capital market.
*ÖBAG manages the federal government's stake in VERBUND on the basis of a management contract; therefore, for presentation purposes, VERBUND is included in the relevant key figures.
Further information on the guidelines for the Austrian indices of the Vienna Stock Exchange is here .
Bernhard Gill is responsible for the cross-investment analysis of the ÖBAG portfolio. Before joining ÖBAG, he worked in corporate valuation and auditing, gaining insights into a wide variety of industries. His international work for the Foreign Trade Center in the Philippines shaped his understanding of global economic interrelationships.
