Dear Ladies and Gentlemen,

I have pleasure in presenting to you the 2018 Annual Report on the Unified Accumulative Pension Fund.

In 2018, Kazakhstan’s fully-funded pension system celebrated its 20th anniversary. A fully-funded pension system can only be considered as mature 40 years after its inception, when at least one generation has completed a full career cycle of membership in the system, which requires making regular contributions. We are half way to that point and can already see that the system is successful. Over these first 20 years, the average annual growth rate of pension assets under management has been 20%, surpassing the pace of Kazakhstan’s GDP growth. As of January 1, 2019, pension assets exceeded 9.37 tn tenge.