The yield on pension assets of NPFs managed by the National Bank is 10.9 percent
The amount of pension savings of depositors of the Unified Accumulative Pension Fund as of November 1, 2021 exceeded 13.2 trillion tenge. As you know, this amount includes pension contributions and investment income.
A significant increase in pension savings was provided due to net investment income, which from January 1 to November 1, 2021 exceeded 1.2 trillion tenge, which exceeds the figures of the previous year by 105.6 billion tenge or 10%. The yield on pension assets of the UAPF under the management of the National Bank of Kazakhstan since the beginning of the year amounted to 9.9%, with inflation of 7.0%. At the same time, the yield for the last 12 months was 10.9%, while inflation for the same period was 8.9%.
Recall that investment income includes income in the form of remuneration on securities (deposits and other transactions), income in the form of market revaluation of financial instruments, income in the form of currency revaluation, income on assets under external management, etc.
In general, the investment income provided by the National Bank since the merger of all pension assets into the UAPF amounted to 5.9 trillion tenge. At the same time, the investment yield since the foundation of the accumulative pension system itself (1998) on November 1, 2021 with an increasing total was 672.69%, inflation was 538.41%. Thus, the real return on pension assets for the period from the beginning of the accumulative pension system until November 1, 2021 amounted to 134.28%.
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 they depend on constant changes in market conditions.
The entire system of investment management and accounting of pension assets is transparent: each depositor has the opportunity to see his investment income in his personal account on the enpf website.kz or in the mobile app. It should be noted that the revaluation of pension assets is carried out weekly and on the last day of the month.
Information on the investment management of the pension assets of the UAPF and on the financial instruments in which the pension assets of the UAPF are placed is published on the official website of the UAPF (www.enpf.kz ) in the section "Indicators/Investment activity".
In addition to the National Bank, UAPF depositors can transfer part of their savings to investment portfolio management companies (IPOs). At the moment, the UAPF has concluded an agreement on the trust management of pension assets with four UIPS. You can get acquainted with the information about them and study their investment declarations on the enpf website.kz in the "Services" section - "Register of investment portfolio managers".
Recall that after receiving pension assets from the UAPF, the UIP invests them in authorized financial instruments specified in the Rules for the Implementation of Investment Portfolio Management Activities approved by Resolution No. 10 of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014, and provided for in the Investment Declaration of the UIP.
It should be noted that pension assets held in trust by JSC "Jusan Invest" have shown profitability since the beginning of activity (and this is March 15, 2021) on November 1, 2021 at the level of 6.5%. The yield for the same period of pension assets held in trust by JSC "Halyk Global Markets" is 6.1%; JSC "BCC Invest" is 5.9%. Centras Securities JSC has been managing pension assets since April 1, 2021, during which time the investment yield was 8.5%.
During the period when pension savings are under the management of the National Bank until the depositor reaches retirement age, a guarantee of the safety of pension savings, taking into account the level of inflation, is in effect. When transferring pension savings to the management of the UIP, the guarantee of the state is replaced by the guarantee of the management company to ensure a minimum level of profitability of pension assets. The minimum level of profitability is calculated based on the weighted average yield of pension assets transferred to the management of the UIP operating in the market.