The amount of pension savings of contributors to the Unified Accumulative Pension Fund as of September 1, 2022 is KZT13.97 trillion. As you know, this amount includes the pension contributions of contributors and investment income.
The share of investment income in pension savings is growing every year. In general, the net investment income provided by the National Bank since 2014 (the end of the process of merging all pension assets into the UAPF) amounted to KZT6.7 trillion. It should be noted that the share of accumulated net investment income in pension savings, taking into account payments made, is 36.9%.
2022 is characterized by general instability in the financial markets against the backdrop of a worsening geopolitical situation. Since the beginning of the period, there has been an increase in inflation and volatility in the indicators of return on pension assets, depending on the market and currency revaluation of financial instruments and demonstrating both positive and negative indicators.
However, due to portfolio diversification by instruments, industries and currencies, positive investment income was earned during July, which covered the temporary decline of previous months. According to the results for eight months, the accounts of contributors and beneficiaries received investment income in the amount of KZT694.7 billion. The return for the last 12 months on pension assets secured by the National Bank of the Republic of Kazakhstan (from September 2021 to August 2022) amounted to 8.58%.
It is worth emphasizing that pension savings are long-term investments and it is advisable to analyze the amount of investment income for a period of at least 1 (one) year. Short-term data (weekly, monthly, etc.) are not indicative, because subject to constant changes in market conditions.
It should be noted that the investment return from the date of the foundation of the funded pension system (1998) as of September 1, 2022, on an accrual basis, amounted to 721.56%, with inflation for the entire period of 632.79%.
The entire system of investment management and accounting of pension assets is transparent: each contributor has the opportunity to see his investment income in their personal account on the enpf.kz website or in a mobile application.
Information on investment management of UAPF pension assets and financial instruments in which UAPF pension assets are placed is published on the official website of UAPF (www.enpf.kz) in the section “Indicators/Investment activity”.