Investment portfolio of UAPF pension assets as of 1 October 2020

The investment income of the UAPF contributors since the beginning of 2020 has exceeded 1 trillion KZT.

 

As of October 1, 2020, the pension assets of the UAPF held in trust by the National Bank of the Republic of Kazakhstan exceeded 12.5 trillion KZT.

The structure of the investment portfolio of financial instruments formed at the expense of the UAPF's pension assets as of the reporting date is posted on the UAPF's official website in the “Indicators” section - “Investment activity”.

As of October 1, 2020, within the framework of the directions approved by the Council for Management of the National Fund of the Republic of Kazakhstan for 2020, the National Bank of the Republic of Kazakhstan (as a trustee) made investments in such financial instruments as:

˗ government securities of the Republic of Kazakhstan issued by the Ministry of Finance of the Republic of Kazakhstan, the current value of which is KZT5,481.14 billion (43.77% of the total portfolio), and the weighted average yield of securities denominated in KZT amounted to 8.7% per annum, in US dollars - 4.4% per annum;

˗ bonds of quasi-governmental organizations of the Republic of Kazakhstan (current value KZT1,707.9 billion (13.63%), the weighted average yield on these instruments denominated in KZT amounted to 10.6% per annum, in US dollars - 4.80% per annum;

- bonds of second-tier banks of the Republic of Kazakhstan in the amount of 1,152.07 billion KZT (9.2%). Compared to the beginning of the year, the share of STB bonds decreased by 2.64%. The weighted average yield to maturity on bonds of STB RK denominated in KZT amounted to 10.0% per annum, in US dollars - 6.3% per annum;

- assets under external management in the amount of 659.56 billion KZT (5.27% of the portfolio). An increase of 211% compared to 1 January 2020 is driven by mandated investments during the reporting period. The aggregate income on these assets amounted to KZT 84.5 billion.

Assets were also diversified into deposits of foreign and Kazakh banks (4.91% and 1.98% of the total portfolio, respectively), deposits of the National Bank of the Republic of Kazakhstan (for 2.36%), cash on investment accounts (share of 2.46 %) and other financial instruments on market terms.

The investment portfolio of financial instruments broken down by currencies in which the financial instruments acquired using the UAPF's pension assets are nominated is presented as follows:

investments in national currency - 69.51%, in US dollars - 30.29%, in other currencies - 0.19% of the portfolio of pension assets.

The structure of the accrued investment income is as follows:

- income in the form of remuneration on securities, including on placed deposits and reverse REPO operations of KZT 612.28 billion;

- income (loss) from market revaluation of securities KZT 51.76 billion;

- income (loss) from revaluation of foreign currency 364.78 billion KZT;

- income from revaluation of other assets (PFI) (5.49) billion KZT;

- income (losses) on assets under external management 84.50 billion KZT;

- other incomes amounted to 3.98 billion KZT.

As a result of investment activities, as well as due to the volatility of foreign exchange rates and changes in the market value of financial instruments, the amount of accrued investment income from the beginning of 2020 amounted to 1.1 trillion KZT. The return on pension assets of the UAPF, distributed to the accounts of contributors (recipients) since the beginning of 2020, amounted to 9.71%, with inflation of 4.90%. Thus, the real return on the UAPF's pension assets was 4.81%.

At the same time, as of October 1, 2020, the profitability of pension assets for the last 12 months (from October 2019 to September 2020) for contributors (recipients) of the UAPF was 11.38% with inflation of 7.00%. Thus, over the past 12 months, the real return on the UAPF's pension assets amounted to 4.38%.

Investment income received by depositors since the start of the accumulative pension system exceeded 5 trillion KZT.