Investment return is an important part of pension savings
The National Bank is the fiduciary manaer of the UAPF's pension assets and invests them in accordance with the Investment Declaration. The list of financial instruments allowed for investment of pension assets is approved by the Government. The main directions of investment of pension assets are determined by the Management Council of the National Fund of the Republic of Kazakhstan.
Pension assets are held in the UAPF investment account with the National Bank. UAPF keeps a personalized record of pension savings of contributors (beneficiaries) on their individual pension saving accounts (IPSA).
Information on the results of investment management and on financial instruments in which pension assets are invested is posted monthly on the UAPF's official website (www.enpf.kz) in the "Indicators / Investment Activity" section.
Pension savings are recalculated and revalued by the UAPF on a daily basis, taking into account the investment return received. The amount of investment return varies and depends on many factors, including the current market value of the investment and exchange rates. As a result, investment return can change, both upward and downward. Possible negative fluctuations in investment return on the contributors' IPSA are observed in the short term and are temporary. In the medium to long term, investment returns are generally positive. Therefore, it is correct to assess the investment results based on the results of a longer period, at least one year.
Information about pension savings 24/7 is available in the contributor's personal account on the UAPF website enpf.kz, in the UAPF mobile application, on the egov.kz portal.
In 2020, the investment return on pension assets was 10.92% with inflation of 7.5%. As a result, the real return for 2020 was 3.42%, and the volume of investment income received during 2020 amounted to KZT 1.3 trillion.
Investment income received by contributors since the beginning of the funded pension system exceeded KZT 5.5 trillion and amounted to more than 43% of pension assets. The accumulated investment return since 1998 (the beginning of the accumulative pension system's operation) amounted to 602.9%, with the accumulated inflation being 496.65%.
Thus, the real (i.e., exceeding inflation) accumulated return on pension assets over the past 23 years as of January 1, 2021 is positive and amounted to 106.25%.
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)