As of August 1, 2020, pension savings in the amount of 12.1 trillion tenge were formed on the accounts of depositors of the Unified accumulative pension Fund. For the year from 01.08.2019 to 01.08.2020, the amount increased by almost 1.9 trillion tenge or 19%. As you know, this amount includes pension contributions and investment income.
From January 1 to August 1, 2020, net investment income in the amount of 752.98 billion tenge of net investment income was credited to the accounts of UAPF depositors, which is 389.77 billion tenge more than in the same period last 2019.
Recall that the pension contributions received to individual pension accounts (IPS), which are recorded by the UAPF, are invested by the Trustee of pension assets - the National Bank of the Republic of Kazakhstan (NBRK) in various financial instruments. The national Bank invests pension assets in accordance with the list of financial instruments allowed to be acquired at the expense of pension assets approved by the Government of the Republic of Kazakhstan, and investment limits in accordance with the UAPF Investment Declaration.
In order to minimize risks, financial instruments are diversified by types and areas of investment, including currencies. Currently, about 2/3 of investments are denominated in tenge and about 1/3-in foreign currency, most of the latter - in US dollars.
The amount of pension savings of depositors (recipients) is recalculated and re-evaluated daily in accordance with the results of investing pension assets.
Investment income includes income in the form of remuneration for securities (deposits and other operations), income in the form of market revaluation of financial instruments, income in the form of currency revaluation, income on assets under external management, etc. Investment income is a variable value and can be either positive or negative in the short term.
At the same time, please note 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 (daily, monthly, etc.) are not indicative, because they depend on the daily market conditions.
Thus, the investment income provided by the National Bank for the period of pension assets management from September 2013 to August 2020 amounted to more than 33% or 4.0 trillion tenge in the total amount of pension savings.
For the period from the date of introduction of the accumulative pension system in Kazakhstan in 1998 to August 1, 2020, net investment income exceeded 5 trillion tenge. Over the entire period of the accumulative pension system, the cumulative investment yield was 577%. At the same time, the cumulative inflation rate was 479.4%. Thus, the real return on pension assets as of August 1, 2020 is 97.6 %.
Note that the whole system of investorline and accounting of pension assets is transparent: each investor has the opportunity to see your investment income in your account on the website enpf.kz or mobile application and to obtain information on the investment management of pension assets of the SAPF and the financial instruments that placed the pension assets of the SAPF. More detailed information is published on the official website of the UAPF (www.enpf.kz) in the "Indicators" section/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 national Bank of the Republic of Kazakhstan manages the pension assets of the UAPF in trust. Since January 1, 2016, the functions of developing proposals for improving the efficiency of pension asset 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, and provides the depositor (recipient) with information about the state of their pension savings (more on www.enpf.kz)