Net investment income accrued to the accounts of UAPF contributors for 9 months of 2023 amounted to about KZT1.4 trillion. This figure is higher than the same period last year by KZT652.8 billion or 91.1%.
The return on pension assets of the UAPF managed by the National Bank of the Republic of Kazakhstan (NBRK) as of October 1, 2023 from the beginning of the year amounted to 8.89%, exceeding inflation for the same period (which amounted to 7.2%).
Investment income consists of income in the form of remuneration on securities (deposits and other transactions), market and currency revaluation of financial instruments, income on assets under external management, etc. The National Bank of Kazakhstan and investment portfolio managers (IPMs), in order to obtain investment income, place pension assets in reliable financial instruments of different sectors of the economy in various currencies in the Republic of Kazakhstan and abroad on a long-term basis. Diversification (diversity of the range of instruments and investment markets) of the investment portfolio ensures the safety and stable return on pension savings.
Investment returns since the founding of the funded pension system in 1998 as of October 1, 2023, on an accrual basis amounted to 806.3%, with inflation for the entire period of 734.08%.
Net investment income received from April 1, 2014 (the period of completion of the merger of pension assets in the UAPF) as of October 1, 2023 amounted to about KZT8.3 trillion. Taking into account the benefit payments made, its share in the total volume of pension savings is 37.7%.
Let us remind you that in Kazakhstan there is a unique guarantee of the safety of compulsory pension contributions, taking into account the level of inflation. In cases of a decrease in return in a particular period, which affected the accumulated return of the contributor upon the onset of the right to benefits, compensation for the difference is guaranteed by the state.
The entire system of investment management and accounting of pension assets is transparent: each contributor has the opportunity to see his investment income in his personal account on the enpf.kz website or in the mobile application.
Information on the investment management of UAPF pension assets and on the financial instruments in which UAPF pension assets are placed is published on the official UAPF website (www.enpf.kz) in the “Indicators/Investment activities” section.
The UAPF was established on August 22, 2013 on the basis of GNPF APF JSC. The UAPF founder and shareholder is the Government of the Republic of Kazakhstan represented by the State Institution “Committee of State Property and Privatization” of the Ministry of Finance of the Republic of Kazakhstan. UAPF pension assets are managed by the National Bank of the Republic of Kazakhstan. From January 1, 2016, the functions for developing proposals to improve the management of pension assets were transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, pension benefits, individual accounting of pension accumulations and benefits, provides the contributor (beneficiary) with information on the status of his pension accumulations (for more information visit www.enpf.kz)