Since the beginning of 2020, as of September 1, more than 871.9 billion tenge of net investment income was credited to the accounts of the UAPF contributors, which is 443.1 billion tenge more compared to the same period last year. Recall that for 8 months of 2019, net investment income amounted to 428.8 billion tenge.
The return on pension assets for 8 months was 7.88%, while inflation for the same period was 4.6%. Annual return (August 2019 - August 2020) is 10.1% with inflation of 7%. Thus, the real return is positive.
If we consider longer periods, then during the management of assets by the National Bank of Kazakhstan from 2014 to September 1, 2020, the yield was 83.2% with an inflation rate of 64.6%. The real return on pension assets exceeded 18.6%.
From the date of introduction of the accumulative pension system in Kazakhstan in 1998 to September 1, 2020, net investment income exceeded 5 trillion tenge. Investment profitability during this time on an accrual basis was 583.6%. At the same time, the cumulative inflation rate was 480.6%. Thus, the real return on pension assets as of September 1, 2020 was 103%.