From January 2021, contributors and beneficiaries can participate in investing their pension savings by choosing their own portfolio management company (IPM).
Now the UAPF has concluded agreements on trust management of pension assets with 4 companies that meet all the requirements established by the Agency of the Republic of Kazakhstan for the regulation and development of the financial market (ARRFR), have a license to operate in the securities market (investment portfolio management activities):
Information about each of the IPMs (including the investment declaration, as well as information about the IPM commission fee) is posted on the enpf.kz website in the "Services" section - "Transfer of a part of pension savings to IPM's trust management". An overview of the investment activities of management companies can also be found on the website enpf.kz in the section "Indicators" - "Overview of investment activities" or "Brief overview of the investment portfolio of pension assets".
After receiving pension assets from UAPF, 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 IPM Investment Declaration.
IPMs are entitled to an investment management fee under the Law on Pension Provision. The maximum amount of IPM remuneration cannot exceed 7.5% of the received investment income. The actual amount of the commission is approved annually by the IPM management body and can change no more than once a year.
It is important to know that during the period when pension savings are under the control of the National Bank until the contributor 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 IPM, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of return on pension assets, which is calculated based on the weighted average return on pension assets transferred to the management of IPM operating on the market.