ANNOUNCEMENT
The accumulated return on pension assets from 2014 to July 1, 2020 amounted to 78%, with accumulated inflation over the same period of 64%. Thus, the real profitability provided by the National Bank of the Republic of Kazakhstan as a trustee is 14%. Investment income for this period amounted to more than 30% of the total amount of pension savings, or 3.8 trillion tenge.
The amount of pension savings of the UAPF is currently close to 12 trillion tenge. As you know, it includes pension contributions and investment income.
Pension contributions received on individual pension accounts (IPA), which are kept by the UAPF, are invested by the trustee of pension assets, the National Bank of the Republic of Kazakhstan, in various financial instruments.
In order to minimize risks, the investment portfolio is diversified by types, areas of investment, including currencies. At present, 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 contributors (recipients) is recalculated and revalued on a daily basis in accordance with the results of investment of pension assets.
Investment income includes income in the form of remuneration on securities (deposits and other transactions), income in the form of market revaluation of financial instruments, income in the form of foreign exchange revaluation, income on assets under external management, etc.
For the first half of this year, from January 1 to July 1, 2020, a net investment income of 543.3 billion tenge was credited to depositors' accounts. 69% of accrued income was income in the form of interest on financial instruments, 29% of income came from foreign exchange revaluation of instruments, the rest of the income was obtained as a result of market revaluation, revaluation of other assets and assets under external management.
Starting from March 2020, the change in the exchange rate of the tenge against the US dollar had a great impact on the investment profitability of pension assets. In March, net investment income amounted to 521.8 billion tenge. Then, starting in April, there was a strengthening of the national currency rate, which caused a negative revaluation compared to the previous rise. However, already in June, there was again an increase in net investment income on pension assets by 44.05 billion tenge.
At the same time, we draw your attention to the fact 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, since depend on daily market conditions.
The entire system of investment management and accounting of pension assets is transparent: each investor 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 the UAPF's pension assets and the financial instruments in which the UAPF's pension assets are placed is published on the UAPF's official website (www.enpf.kz) in the “Indicators / Investment Activity” section.
UAPF was established on August 22, 2013 on the basis of APF GNPF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution "Committee for 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. From January 1, 2016, the functions of developing proposals to improve the efficiency of pension assets management were transferred to the Council for the Management of the National Fund. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory 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 )