INFORMATIONAL MESSAGE
Against the background of an unstable macroeconomic situation, the investment income of pension assets remains positive
The amount of pension savings of depositors of the Unified Accumulative Pension Fund as of December 1, 2022 amounted to 14.4 trillion tenge.
Net investment income distributed to depositors' accounts since the beginning of the year amounted to 777 billion tenge. Despite the negative macroeconomic situation in 2022, the return on pension assets for 12 months (December 2021-November 2022) amounted to 5.91%. At the same time, over the past five years, the accumulated profitability exceeds the inflation rate.
The year 2022, marked by rapid growth in interest rates, as well as low asset yields, has become difficult for pension funds around the world. According to the quarterly analytical reports of Willis Towers Watson (Global Pension Finance Watch, wtwco.com ), changes in exchange rates with a noticeable strengthening of the US dollar, as well as inflationary pressure, which persists in all countries, have a great impact on the performance of pension systems. Pension assets in the UK suffered the most, the loss on them since the beginning of the year was (-29.6%). Next in terms of loss-making indicators is the US pension market with a negative yield (-15.7%). The investment loss of the Eurozone countries, Switzerland and Canada amounted to (-14.1%). The loss on Japan's pension assets was (-3.0%). According to open sources, Norway's largest public pension fund in the world lost $174 billion in the first half of 2022.
Pension savings are long–term investments. In some periods, there may be a decrease in profitability due to the volatility of foreign exchange rates, changes in the market value of financial instruments, as well as the impact of inflation.
In the medium and long term, a positive real (exceeding accumulated inflation) return on pension savings is ensured. The investment yield since the foundation of the accumulative pension system (1998) on December 1, 2022 with an increasing total amounted to 726.3% with inflation for the entire period of 669%.
The income earned by the National Bank of the Republic of Kazakhstan since 2014, the period of completion of consolidation of all pension assets in the UAPF, amounted to KZT 6.8 trillion.
Even if a decrease in profitability in a separate period affects the accumulated profitability of the depositor upon the onset of the right to payments, we recall that in the Republic of Kazakhstan there is a unique guarantee of the safety of mandatory types of pension contributions, 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".
There is a lot of interesting and useful information on the YouTube channel BZHZKENPF.
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 ).