The amount of pension savings of the UAPF has now exceeded 12.6 trillion tenge. As you know, it includes pension contributions and investment income.
Recall that 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 operations), 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 10 months of the current year from January 1 to October 31, 2020, a net investment income of 1.1 trillion tenge was credited to the accounts of depositors, which is twice as much as the indicator for the same period in 2019 (net investment income from 01.01.2019 to 31.10 .2019 amounted to 551.1 billion). Note that the profitability for the year from 11/01/2019 to 10/31/2020 was 10.88% with inflation of 7.1%, while the yield from the beginning of 2020 was 9.94%, and inflation was 5.5%.
In general, the investment income provided by the National Bank since the merger of all pension assets in the UAPF amounted to about 4.6 trillion tenge. As of the reporting date, the share of net investment income in the total amount of pension savings is 34.5%.
If we take the period since the founding of the most funded pension system of Kazakhstan in 1998, then the net investment income exceeded 5.4 trillion tenge. Investment profitability during this time on an accrual basis amounted to 596.69%. At the same time, inflation amounted to 485.55%. Thus, the real return on pension assets as of November 1, 2020 was 111.14%.
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.