An increase in savings is observed in all types of contributions. The amount of compulsory pension contributions increased by 18.4% per year, compulsory professional contributions - by 30.5%, and voluntary pension contributions grew by 5%.
“Over the past 5 years, the amount of UAPF pension savings has more than doubled - from 4.3 trillion tenge to 10.2 trillion tenge. This kind of significant amount of assets requires appropriate diversification. The current structure of the retirement portfolio includes various types of financial instruments. The government securities of the Republic of Kazakhstan make the greater part of the portfolio with a share of 39.3%,” the analysts of Finprom.kz cited.
However, the return on investment as of January–July of the current year amounted to 396.3 billion tenge. In annual terms, the yield reached 9.7% with inflation of 5.4%. A real positive return on pension assets of more than 4% has been obtained over the past 12 months. The accumulated yield by the end of this July was 65.4%, and accumulated inflation for the same period was 53.5%. Thus, from the beginning of 2014 to July 2019, the actual accumulated yield has reached almost 12%.
“The main part of revenue is income in the form of interest on securities, including investments and reverse repo operations: 385 billion tenge (312.9 billion tenge a year earlier), the growth for the year is 23%. Thus, we can conclude that the National Bank of the Republic of Kazakhstan pursues a balanced investment policy which ensures not only safety, but also real profitability on pension savings of UAPF depositors,” concluded Finprom.kz experts.
Photos are from open sources.