The net investment income of contributors (beneficiaries) of the Unified Accumulative Pension Fund since the beginning of the year, as of March 1, 2023, exceeded KZT204.4 billion.
The amount of pension savings as of March 1, 2023, including pension contributions and investment return of contributors (beneficiaries), is about KZT15.13 trillion.
The net investment income provided by the National Bank since 2014 (completion of the process of merging all pension assets into the UAPF) amounted to more than KZT7.13 trillion.
The year 2023 is marked by instability in the financial markets against the backdrop of the ongoing instability of the geopolitical situation. Since the beginning of the year, there has been an increase in inflation and volatility in the indicators of return on pension assets, which depends on the market and currency revaluation of financial instruments and demonstrates both positive and negative indicators.
However, due to portfolio diversification by selected financial instruments, sectors of the economy and currencies, a positive investment income was earned within 2 months.
As you know, 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 (weekly, monthly, etc.) is not representative, because dependent on changes in market conditions.
We emphasize that in the long term, a positive real (exceeding accumulated inflation) return on pension savings is ensured. The cumulative return since the foundation of the funded pension system (1998) as of March 1, 2023 has been cumulatively 740.12%, with inflation for the entire period of 695.96%.
Recall that in Kazakhstan there is a unique guarantee of the safety of compulsory types of 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 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 interviews with experts from the accumulative pension system on investing pension assets, is on the YouTube channel БЖЗҚЕНПФ.