INFORMATIONAL MESSAGE
The real return on pension assets since the beginning of the accumulative pension system was 130.46 %
The amount of pension savings of depositors of the Unified Accumulative Pension Fund as of February 1, 2022 is 13.1 trillion tenge. As you know, this amount includes pension contributions and investment income.
Despite the instability in the financial markets, including related to the political situation in January both in Kazakhstan and abroad, net investment income for the first month of 2022 showed positive dynamics and reached 10.6 billion tenge.
It is important to emphasize that pension savings are long-term investments and it is advisable to analyze the amount of investment income for a period of at least one year. Short-term data (weekly, monthly, etc.) are not indicative, because they depend on constant current changes in market conditions.
For example, the amount of net investment income for the entire past 2021, distributed to the IPS of depositors (recipients), amounted to about 1.4 trillion tenge, which exceeded the amount of contributions received for the year (1.3 trillion tenge). The yield on pension assets of the UAPF in the past 2021 under the management of the National Bank of Kazakhstan since the beginning of the year amounted to 11.13% (which is higher than the yield on term bank deposits), with inflation of 8.4%.
At the same time, in general, the investment income provided by the National Bank since the merger of all pension assets into the UAPF (2014), as of February 1, 2022, amounted to 6.05 trillion tenge, which is 36.7% of all pension savings of Kazakhstanis. The investment yield since the foundation of the accumulative pension system (1998) on February 1, 2022, with an increasing total, amounted to 681.75%, with inflation for the entire period of 551.29%. Thus, the real return on pension assets for the period from the beginning of the accumulative pension system until February 1, 2022 amounted to 130.46%.
Recall that Pension Asset Managers (National Bank of the Republic of Kazakhstan and Investment Portfolio Managers (IPM)) in order to obtain investment income, pension assets are placed in Kazakhstan and abroad in various financial instruments in various sectors of the economy, in different currencies. Such diversification ensures the safety and sustainable profitability of pension savings. Investment income consists of income in the form of remuneration on securities (deposits and other transactions), income in the form of market and currency revaluation of financial instruments, income on assets under external management, etc.
Income from market and currency revaluation can be either positive or negative in a particular period. Therefore, 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.
In general, in accordance with the Law on Pension Provision of the Republic of Kazakhstan, the state provides a guarantee of the safety of pension savings taking into account inflation at the time of obtaining the right to pension payments. This norm, which has no analogues anywhere in the world, contributes to the preservation of depositors' savings from inflation. 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 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 24/7. It should be noted that the revaluation of pension assets is carried out weekly and on the last day of each 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".
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 ).