ANNOUNCEMENT
The Net Investment Income of UAPF contributors
for 3 months of 2024 amounted to about KZT569.5 bln
Net investment income accrued to individual and notional pension savings accounts of UAPF contributors, as of April 1 since the beginning of this year, amounted to about KZT569.5 bln, which is more than KZT233.1 bln or 69.3% of the same period last year.
The return on pension assets of the Unified Accumulative Pension Fund, formed from compulsory pension contributions (CPC), compulsory occupational pension contributions (COPC), voluntary pension contributions (VPC), distributed to the accounts of contributors (beneficiaries) for 3 months of 2024, amounted to 3.15%. The return on pension assets of the UAPF, formed from the employer's compulsory pension contributions (ECPC), as of April 1, 2024 from the beginning of the year is 1.37%.
Investment income consists of income in the form of interest on financial instruments (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. Duetosuchdiversification, stableinvestmentreturnsareensured.
In the structure of the investment portfolio of pension assets of the UAPF, formed at the expense of CPC, COPC, VPC and being in trust management of the National Bank of the Republic of Kazakhstan, by currency as of April 1, 2024, 33.16% are financial instruments denominated in US dollars, 66.81% - in national currency. The investment portfolio of pension assets formed at the expense of the ECPC includes only financial instruments denominated in national currency.
Investment returns since the founding of the funded pension system in 1998 as of April 1, 2024, cumulatively amounted to 845.3%, with inflation for the entire period of 776.5%. Thus, the accumulated investment income in the long term exceeds inflation.
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.
A lot of interesting and useful information, including interviews with experts of the funded pension system on investing pension assets, is on the БЖЗҚЕНПФYouTube channel.
UAPF was founded on August 22, 2013 on the basis of GNPFAPF JSC. The founder and shareholder of the UAPF 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. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan "On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan", ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details at www.enpf.kz).