INFORMATIONAL MESSAGE
The amount of net investment income as part of
pension assets are increasing
As of July 1, 2022, the pension savings of depositors of the Unified Accumulative Pension Fund amounted to about 13.4 trillion tenge. The amount of investment income since the beginning of the operation of the accumulative pension system, that is, since 1998, exceeds 7.2 trillion tenge. At the same time, the investment income received since 2014, the period of the end of the consolidation of all pension assets in the UAPF, is about 6.4 trillion tenge.
The year 2022 is characterized by general instability in the financial markets against the background of the deteriorating geopolitical situation. Since the beginning of the period, there has been an increase in inflation and volatility in the profitability of pension assets, which depends on the market and currency revaluation of financial instruments and demonstrates both positive and negative indicators.
Nevertheless, due to the diversification of the portfolio by instruments, industries and currencies, a positive investment income was earned during June, which covered the temporary decline of the previous months. According to the results of the half-year, the accounts of depositors and recipients received investment income in the amount of more than 338 billion tenge. The yield for the last 12 months on pension assets secured by the National Bank of the Republic of Kazakhstan (from July 2021 to June 2022) amounted to 7.33%.
Recall 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 investment yield since the foundation of the accumulative pension system (1998) on July 1, 2022 with an increasing total amounted to 700.42% with inflation for the entire period of 614.68%. Thus, the real (i.e. exceeding inflation) return on pension assets for the period from the beginning of the accumulative pension system on July 1, 2022 amounted to 85.74%.
But even if the instability of financial markets will be long-term and the real profitability will be lower than inflation at the time of receipt of the right to payments, the state guarantees recipients the safety of mandatory pension contributions (OPV) and mandatory occupational pension contributions (OPV) in the UAPF in the amount of funds actually deposited, taking into account the level of inflation.
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".
Video commentary on the topic –by link https://www.youtube.com/watch?v=P4ak5x-BDcY .
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 ).