INFORMATIONAL MESSAGE
UAPF depositors received 938 billion tenge of net investment income
The amount of pension savings of depositors of the Unified Accumulative Pension Fund as of September 1, 2021 exceeded 12.9 trillion tenge. As you know, this amount includes pension contributions and investment income.
It is important to note that only in the eight months from January 1 to September 1, 2021, net investment income in the amount of 938.9 billion tenge was accrued to the accounts of UAPF depositors, which is 67 billion tenge or 8% more than in the same period last year. The yield on pension assets of the UAPF managed by the National Bank of the Republic of Kazakhstan since the beginning of the year on September 1 amounted to 7.65%, with inflation of 5.8%. At the same time, the yield over the past 12 months was 10.68%, with inflation over the same period at 8.7%.
Recall that the amount of pension savings of depositors (recipients) is recalculated and reassessed weekly in accordance with the results of investing pension assets. 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 over 5.6 trillion tenge. As of September 1, 2021, the share of net investment income in the total amount of pension savings is 36.5%.
At the same time, the investment yield since the foundation of the accumulative pension system itself (1998) on September 1, 2021 with an increasing total was 656.67%, inflation was 531.25%. Thus, the real return on pension assets for the period from the beginning of the accumulative pension system until September 1, 2021 amounted to 125.41%.
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. 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 September 1, 2021 at the level of 5.1%. The yield for the same period of pension assets held in trust by JSC "HALYK Global Markets" is 4.7%; JSC "BCC Invest" is 3.7%. Centras Securities JSC has been managing pension assets since April 1, 2021, during which time the investment yield was 5.9%.
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.
The UAPF was established on August 22, 2013 on the basis of JSC "NPF "GNPF". The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Property and Privatization Committee of the Ministry of Finance of the Republic of Kazakhstan. The trust management of pension assets of the UAPF is carried out by the National Bank of the Republic of Kazakhstan. Since January 1, 2016, the functions of developing proposals to improve the efficiency of pension assets management have been transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts mandatory pension contributions, mandatory occupational pension contributions, voluntary pension contributions, pension payments, individual accounting of pension savings and payments, provides the depositor (recipient) with information on the status of his pension savings (more on www.enpf.kz ).