Since the beginning of the year, more than 661.7 billion tenge have been credited to the accounts of depositors

Pension assets accumulated on the accounts of depositors with the UAPF exceeded 11.7 trillion tenge as of April 1, 2020. At the same time, the investment income in the structure of pension savings of citizens, accrued for the period of management of the UAPF assets by the National Bank of the Republic of Kazakhstan since September 20131, is more than 30% (or 3.9 trillion tenge).

As a result of investment activities due to the volatility of foreign exchange rates and changes in the market value of financial instruments, the amount of accrued investment income may vary and should be considered in the long term.

For example, over the past 2019, the net investment income accrued on the IAP of the UAPF depositors amounted to 641.8 billion tenge, the yield was 6.57% with inflation of 5.4%. In 2018, the net investment income of depositors amounted to 977.2 billion tenge, the yield was 11.27% with inflation of 5.3%. Thus, profitability indicators may differ from year to year, however, they exceed inflation, i.e. the real return on pension assets is positive.

Since the beginning of 2020, as of April 1, more than 661.7 billion tenge of investment income has been accrued to the depositors' ITS, which is 564.8 billion tenge more compared to the same period last year (96.9 billion tenge). In general, investment income is not a fixed amount, depending on the cost of financial instruments and the situation in the financial market as a whole. A temporary decrease in the amount of investment income at the expense of individual financial instruments is compensated by diversifying the entire investment portfolio of pension assets in a longer period.

The main principle of investing pension money is its safety, i.e. minimization of the risks of their loss for whatever reasons. Therefore, pension assets are invested in various types and, at the same time, the most reliable financial instruments that domestic and foreign stock markets can offer. The higher the profitability, the higher the risks of losing investments, the lower the risks of losing investments, the lower the profitability. When choosing financial instruments for investing pension assets, the National Bank of the Republic of Kazakhstan seeks to ensure the most reasonable balance in the risk-return ratio.

In addition, the law on pension provision provides for a state guarantee of the safety of pension savings, which

applies to all pension contributions, taking into account the inflation rate at the time of eligibility.