INFORMATIONAL MESSAGE
Net investment income of UAPF depositors since the beginning of the year exceeded
501 billion tenge
The amount of pension savings of depositors of the Unified Accumulative Pension Fund as of August 1, 2022 is about 13.7 trillion tenge. As you know, this amount includes the pension contributions of depositors and investment income.
The share of investment income in pension savings is growing annually. In general, the net investment income provided by the National Bank since 2014 (the end of the process of combining all pension assets into the UAPF) amounted to 6.5 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 July, which covered the temporary decline of the previous months. According to the results for seven months, the accounts of depositors and recipients received investment income in the amount of more than 501 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 August 2022) amounted to 8.24%.
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.
For example, the amount of net investment income for the past 2021, distributed to the pension accounts 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 2021 under the management of the National Bank of Kazakhstan since the beginning of the year amounted to 11.13%, with inflation of 8.4%.
It should be noted that the investment yield since the foundation of the accumulative pension system (1998) on August 1, 2022 with an increasing total amounted to 710.11% with inflation for the entire period of 622.44%. Thus, the real (i.e. exceeding inflation) return on pension assets for the period from the beginning of the accumulative pension system on August 1, 2022 amounted to 87.67%.
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".
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 ).