For the first eight months of 2024, the net investment income of Kazakhstanis exceeded the amount of pension contributions, reaching 1.92 trillion tenge

PRESS RELEASE

For the first eight months of 2024, the net investment income of Kazakhstanis exceeded the amount of pension contributions, reaching 1.92 trillion tenge

Net investment income of Kazakhstanis for the first 8 months of 2024 amounted to approximately 1.92 trillion tenge, which is an increase of 883.05 billion tenge or 85.3% compared to the same period last year.

At the same time, contributors and beneficiaries received income amounting to 1.91 trillion tenge from mandatory pension contributions (MPC), mandatory occupational pension contributions (MOPC), and voluntary pension contributions (VPC), which exceeds the total amount of these contributions, which was 1.78 trillion tenge.

The net investment income from employer mandatory pension contributions (EMPC), which started in 2024, was 8.5 billion tenge with total contributions of 140.2 billion tenge.

The return on UAPF’ pension assets formed from MPC, MPPC, and VPC, was 10.34% for the first eight months of 2024, while the inflation rate during this period was 5.3%. The return on pension assets of the UAPF formed from EMPC as of September 1, 2024, since the beginning of the year, was 8.52%.

Furthermore, the return on pension assets of the UAPF over the last 12 months as of September 1, 2024, was 13.79%, with an inflation rate of 8.40%.

Investment income consists of interest income from financial instruments (such as securities, deposits, and other transactions), market and currency revaluation of financial instruments, and income from assets under external trust management, among other sources. To safeguard pension assets and generate returns, the National Bank of the Republic of Kazakhstan (NBK) and private portfolio managers continuously diversify the investment portfolio. This means that assets are invested in various financial instruments and currencies and are regularly reallocated based on market conditions. According to the monthly reports on investment activities published by the National Bank of Kazakhstan on the website enpf.kz, as of September 1, 2024, income was received from all types of instruments.

The accumulated investment returns over the long term also exceed inflation. Since the establishment of the fully funded pension system in 1998, as of September 1, 2024, the cumulative return has reached 911.20%, while inflation over the same period was 799.59%.

It is important to remind that Kazakhstan has a unique guarantee for the preservation of mandatory pension contributions, taking into account the level of inflation. In cases where returns decline during a specific period, affecting the accumulated return of contributors upon their entitlement to pension benefit payments, the government guarantees compensation for the difference.

The entire system of investment management and accounting for pension assets is transparent: each contributor can view their investment income in their personal account on the website enpf.kz or via the mobile application.

Information regarding the UAPF’ investment management and the financial instruments in which pension assets are allocated is published on the official UAPF website (www.enpf.kz) in the “Indicators/Investment Activities” section.

There is also a lot of interesting and useful information, including interviews with experts from the fully funded pension system about investing pension assets, available on the YouTube channel of the UAPF.

UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan “On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan”, ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details at www.enpf.kz).