Hello! Sometimes, I see how various people in the comments on social networks write that the money in the UAPF is “dead weight” and is not invested anywhere, is this information correct? And what is your current income?
Pension savings of UAPF contributors are continuously invested and work for the contributor. Only for the first half of the year from January 1 to July 1, 2021, net investment income in the amount of 753.3 billion tenge was credited to the accounts of UAPF depositors, which is almost 210 billion tenge or 39% more than in the first half of last year. Yield on UAPF pension assets managed by the National Bank of the Republic of Kazakhstan since the beginning of the year amounted to 6.1%, with inflation of 4.6%. At the same time, the yield for the last 12 months was 12.1%, with inflation over the same period of 7.9%.
The amount of pension savings of contributors is recalculated and revalued weekly 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.
Detailed information on the investment of pension assets by the National Bank of the Republic of Kazakhstan (NBK), investment portfolio managers (IPM), as well as investment activity reviews as of July 1, 2021, are posted on the enpf.kz website in the section “Indicators - Investment activity”.
In general, the investment income provided by the National Bank since the merger of all pension assets into the UAPF amounted to over 5.4 trillion tenge. As of July 1, 2021, the share of net investment income in total pension savings is 36.3%.
It should be noted that in addition to the National Bank, UAPF depositors can transfer part of their savings to investment portfolio management companies (IPM). At the moment, the UAPF has concluded an agreement on trust management of pension assets with four IPMs. You can get acquainted with information about them and study their investment declarations on the website enpf.kz in the section "Services" - "Register of Investment Portfolio Managers".
Recall that after receiving pension assets from the UAPF, the IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the Investment Declaration of the IPM.
In addition, during the period when pension savings are under the control of the National Bank until the depositor reaches retirement age, there is a guarantee of the safety of pension savings, taking into account the level of inflation. When transferring pension savings to the management of the IPM, the guarantee of the state is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets. The minimum level of return is calculated on the basis of the weighted average return on pension assets transferred to the management of a IPM operating on the market.