As is known, the investment of pension assets is carried out by the National Bank of the Republic of Kazakhstan (NBRK), and from 2021 – by investment portfolio managers (IPM). The main goal of such trust management of pension savings is investing in various financial instruments and generating income.
Since January 2021, in accordance with the law, every citizen of Kazakhstan has the right to transfer into trust management a part of their pension savings at the expense of compulsory pension contributions (CPC) and (or) compulsory occupational pension contributions (COPC) to private management investment companies. This right was available to contributors who have not reached retirement age and have pension savings through CPC and (or) COPC exceeding the “minimum sufficiency threshold,” as well as contributors who have entered into pension annuity agreements with insurance companies, providing them with lifelong annuity payments.
From July 1, 2023, with the entry into force of the Social Code of the Republic of Kazakhstan, investors can transfer up to 50% of their savings formed from mandatory types of contributions and up to 100% of savings from voluntary pension contributions to management companies.
Currently, the UAPF has concluded agreements on the trust management of pension assets with five pension insurance companies. You can get information about them and study their investment declarations on the enpf.kz website in the “Services” section - “Register of investment portfolio managers”.
During the period from March 15, 2021 to December 31, 2023, 20,110 transfers were made from the NBRK to the IPM in the amount of KZT27,757.23 mln.
The average transfer amount is about KZT1.4 mln. Detailed statistics on the transfer of pension savings to trust management are also available on the enpf.kz website in the “Indicators” section - “Transfer of pension savings to management companies.”
Transfers from the NBRK to the IPM (in million KZT) in the period from 2021 to 2023 are as follows:
|
IPM |
2021 |
2022 |
QI 2023 |
QII 2023 |
QIII 2023 |
QIV 2023 |
Total in 2021 - 2023 |
Share in % |
|
Jusan Invest JSC |
3,302.54 |
626.02 |
13.15 |
9.26 |
1,064.69 |
1,696.61 |
6,712.25 |
24.2% |
|
Halyk Global Markets JSC |
1,954.31 |
534.49 |
7.03 |
5.92 |
371.68 |
668.45 |
3,541.87 |
12.8% |
|
BCC Invest JSC |
1,153.54 |
276.42 |
6.68 |
6.94 |
676.40 |
964.49 |
3,084.47 |
11.1% |
|
Centras Securities JSC |
766.10 |
128.03 |
0.90 |
0.00 |
125.73 |
140.44 |
1,161.20 |
4.2% |
|
Halyk Finance JSC |
0.00 |
3.90 |
51.51 |
87.60 |
1,553.89 |
11,560.52 |
13,257.43 |
47.8% |
|
Total: |
7,176.48 |
1,568.86 |
79.27 |
109.72 |
3,792.39 |
15,030.51 |
27,757.23 |
100% |
As can be seen from the data provided, in 2021, when Kazakhstanis had the opportunity to transfer their savings to the IPM, they made 4,141 transfers from the NBRK in the amount of KZT7,176.48 mln. Then in 2022 and the first half of 2023, one can note a decrease in interest in making transfers to IPM.
Since July 1, 2023, when the opportunity to manage pension assets was provided to all contributors, there has again been a surge in transfers of savings to management companies.
In the period from July to December 2023, from the NBRK to the IPM, in accordance with the new conditions, Kazakhstanis transferred KZT18.8 bln to portfolio managers on 14,119 applications.
After the initial transfer of pension assets to trust management by IPM, the contributor has the right, no more than once a year, to submit an application to the UAPF for the transfer of his pension savings to trust management from one IPM to another. In the period from April 2022 to December 2023, the UAPF executed 208 applications from Kazakhstanis for transfer from one IPM to another for a total amount of KZT502.57 mln.
From July 1, 2023, the period for returning pension savings from the trust management of IPM to the trust management of the NBRK has been reduced. An application for the return of pension savings held in trust management by IPM to the trust management of the National Bank of Kazakhstan can be submitted to the UAPF 1 year from the date of transfer of pension savings to trust management by IPM. From April to December 2023, the UAPF executed 908 applications for the transfer of funds to the NBRK from IPM for a total amount of KZT3.13 bln.
Let us remind you that after receiving pension assets from the UAPF, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the IPM Investment Declaration.
The results of IPM's investment activities are as follows:
|
Name |
Investment income (KZT mln) and return on pension assets * (%) |
|||||||
|
in 2021 |
in 2022 |
in 2023 |
Total in 2021 - 2023 |
|||||
|
Jusan Invest JSC |
139.29 |
8.08% |
117.61 |
3.25% |
606.28 |
13.48% |
863.18 |
26.64% |
|
Halyk Global Markets JSC |
112.79 |
8.41% |
110.61 |
4.19% |
403.99 |
15.55% |
627.39 |
30.52% |
|
BCC Invest JSC |
74.51 |
8.37% |
42.82 |
2.75% |
230.23 |
13.05% |
347.56 |
25.88% |
|
Centras Securities JSC |
46.72 |
9.37% |
46.46 |
4.12% |
105.27 |
10.67% |
198.45 |
26.02% |
|
Halyk Finance JSC** |
0 |
0 |
0.01 |
0.13% |
328.02 |
17.20% |
328.03 |
17.35% |
|
Total: investment income and weighted average return on pension assets |
373.31 |
8.40% |
317.51 |
3.64% |
1 673.79 |
14.47% |
2 364.61 |
26.22% |
Note:
*Return on pension assets held in trust by IPM, calculated on the basis of the increase in the notional pension unit in which pension assets are accounted for
**Return on pension assets since the beginning of activity (trust management agreement with Halyk Finance JSC was concluded in November 2022)
On their individual pension saving account statement, savers can see how much their chosen IPM has earned.
Investment activities for managing pension assets are transparent. On the website enpf.kz in the section “Indicators - Investment Activity”, detailed information on the investment of pension assets by the NBRK and investment managers IPM, as well as reviews of investment activities, is posted monthly.
All necessary information and step-by-step instructions for transferring part of pension savings at the expense of CPC and (or) COPC to IPM are posted on the website www.enpf.kz in the “Services” section - “Transfer of part of pension savings into trust management”.
The 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)