For 4 months of 2023, the accounts of UAPF contributors received a net investment income in the amount of KZT469.04 billion, which exceeds the same period last year by KZT340.32 billion or 3.6 times.
The yield for the last 12 months on pension assets secured by the National Bank of the Republic of Kazakhstan amounted to 8.93%.
Investment income consists of income in the form of interest on securities (deposits and other transactions), in the form of market and currency revaluation of financial instruments, income on assets under external management, etc. The National Bank of the Republic of Kazakhstan and investment portfolio managers (IPM), being managers of pension assets, in order to receive investment income, place pension assets in various financial instruments of various sectors of the economy in various currencies in the Republic of Kazakhstan and abroad. Such diversification ensures the safety and sustainable return on pension savings. Thus, due to portfolio diversification, a positive investment income was earned within 4 months.
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 return in the long term.
It should be noted that the investment return from the day the accumulative pension system was founded (in 1998) as of May 1, 2023, on an accrual basis, amounted to 758.38%, with inflation for the entire period of 710.74%. Consequently, the accumulated investment income in the long run exceeds inflation.
We also recall that in Kazakhstan there is a unique guarantee of the safety of mandatory pension contributions, taking into account the level of inflation. Even with a decrease in return in a particular period, which affected the accumulated return of the contributor upon the onset of the right to pension benefits, the compensation for the difference is guaranteed by the state.
The entire system of investment management and accounting of pension assets is transparent: each contributor has the opportunity to see his investment income in his personal account on the enpf.kz website or in a mobile application.
Information on investment management of UAPF pension assets and financial instruments in which UAPF pension assets are placed is published on the official website of UAPF (www.enpf.kz) in the section “Indicators/Investment activity”.
A lot of interesting and useful information, including an interview with experts from the accumulative pension system on investing pension assets, is on the YouTube channel БЖЗҚЕНПФ