For 6 months of 2023, the accounts of UAPF contributors received a net investment income in the amount of KZT571.2 billion, which exceeds the same period last year by KZT233 billion or 68.9%.
The yield for the last 12 months on pension assets secured by the National Bank of the Republic of Kazakhstan (NBRK) amounted to 7.9%.
Investment income consists of income in the form of interest on securities (deposits and other transactions), market and currency revaluation of financial instruments, income on assets under external management, etc. Pension contributions received on individual pension saving accounts are invested by the trust manager of pension assets - the NBRK and investment portfolio managers (IPM) in reliable financial instruments of various sectors of the economy in various currencies in the Republic of Kazakhstan and abroad. Due to this diversification, the safety of assets and sustainable investment returns are ensured.
Pension assets managed by the NBRK are invested in accordance with the Investment Declaration approved by the Resolution of the Board of the NBRK dated February 24, 2020 No. 10, as well as the list of financial instruments allowed for IPM to be acquired at the expense of pension assets, in accordance with the Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated February 15, 2021 No. 29.
IPMs have their own strategies for investing pension assets within the framework of the Resolution of the Board of the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market dated February 15, 2021 No. 29 On approval of requirements for investment portfolio managers who can be transferred to trust management of pension assets, and independently determine the structure of the investment portfolio as part of the investment declaration. Accounting for all pension savings (even after the transfer of part of them to private management companies) is maintained by the UAPF. You can get acquainted with the investment activity of the PIS and profitability indicators on the website enpf.kz in the section “Indicators” - “Investment activity. In addition, each investor has the opportunity to see their investment income in their personal account on the enpf.kz website or in a mobile application.
Recall that the return on pension assets over short periods of time does not show an objective picture of the effectiveness of their management. UAPF pension assets have a long investment horizon and the main purpose of investment is to obtain real profitability in the long term.
It should be noted that the investment return from the moment the funded pension system was founded (in 1998) as of July 1, 2023, on an accrual basis, amounted to 763.88%, with inflation for the entire period of 719.3%. Therefore, the accumulated investment income in the long run exceeds inflation.