INFORMATION MESSAGE
Since the beginning of the year, more than 661.7 billion tenge has been credited to depositors ' accounts
Pension assets accumulated on the accounts of depositors in the UAPF, as of April 1, 2020, exceeded 11.7 trillion tenge. At the same time, investment income in the structure of pension savings of citizens, accrued during the period of asset management of the UAPF by the National Bank of the Republic of Kazakhstan since September 2013[1], is more than 30% (or 3.9 trillion tenge).
As a result of investment activity, due to the volatility of foreign exchange rates and changes in the market value of financial instruments, the amount of accrued investment income may vary, and it must be considered in the long term.
For example, for the past 2019, the net investment income accrued on the IPS of UAPF depositors amounted to 641.8 billion tenge, the yield was 6.57% with inflation of 5.4%. For 2018, the net investment income of depositors amounted to 977.2 billion tenge, the yield was 11.27% with an inflation rate of 5.3%. Thus, the yield indicators may differ over the years, but at the same time exceed inflation, i.e. the real return on pension assets is positive.
Since the beginning of 2020, as of April 01, more than 661.7 billion tenge of investment income has been accrued on the IPS of depositors, which is 564.8 billion tenge more than in the same period last year (96.9 billion tenge). In General, investment income is not a fixed amount, depending on the value of financial instruments and the situation on the financial market as a whole. A temporary decrease in investment income due to individual financial instruments is compensated by diversifying the entire investment portfolio of pension assets over a longer period.
The main principle of investing pension money is its safety, i.e. minimizing the risks of losing it for any reason. Therefore, pension assets are invested in various types and, at the same time, the most reliable financial instruments that the domestic and foreign stock markets can offer. The higher the return – the higher the risk of investment loss, and the lower the risk of investment loss, the lower the return. When choosing financial instruments for investing pension assets, the national Bank of Kazakhstan strives to ensure the most reasonable balance in the risk-return ratio.
In addition, the law on pension provision provides for a state guarantee of the safety of pension savings, which applies to all pension contributions taking into account the level of inflation at the time of receiving the right to payments.
([1] taking into account the investment income paid in payments and transfers of pension savings)