ANNOUNCEMENT
This year, the net investment income of UAPF contributors exceeded 475 billion tenge
As of May 1, 2021, the amount of pension savings of contributors to the Unified Accumulative Pension Fund exceeded 12.6 trillion tenge. As you know, this amount includes pension contributions and investment income.
It is important to note that in just four months from January 1 to May 1, 2021, net investment income in the amount of 475.8 billion tenge was credited to the accounts of UAPF depositors. Yield on UAPF pension assets managed by the National Bank of the Republic of Kazakhstan since the beginning of the year as of May 1 amounted to 3.8%, with inflation of 2.7%. The yield for the last 12 months was 9.8%, with inflation over the same period of 7.0%.
The amount of pension savings of contributors (recipients) is recalculated and re-evaluated on a weekly basis in accordance with the results of investing pension assets. Investment income includes income in the form of interest 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 about 5.2 trillion tenge. As of May 1, 2021, the share of net investment income in total pension savings is 35.6%.
If we take the period from the date of the founding of the most accumulative pension system in Kazakhstan in 1998, then the net investment income exceeded 6 trillion tenge. Investment profitability during this time with a cumulative total amounted to 621.9%. At the same time, inflation amounted to 519.4%. Thus, the real return on pension assets for the period from the start of the funded pension system until May 1, 2021 amounted to 102.5%.
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 subject to constant changes in market conditions.
The entire system of investment management and accounting for pension assets is transparent: each contributor has the opportunity to see his investment income in his personal account on the enpf.kz website or in a mobile application. Information on the investment management of UAPF pension assets and on financial instruments in which UAPF pension assets are placed is published on the UAPF official website (www.enpf.kz) in the “Indicators/Investment Activity” section.
UAPF was established on August 22, 2013, on the basis of SAPF APF JSC. The founder and shareholder of UAPF is the Government of the Republic of Kazakhstan represented by the State Institution "Committee of State Property and Privatization" of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets 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 professional pension contributions, voluntary pension contributions, pension payments, individual accounting of pension savings and payments, provides the contributor (recipient) with information on the state of his pension savings (for more details, see www.enpf.kz).