Kassym-Jomart Tokayev signed a law changing the management of pension assets. Now depositors can independently choose an investment portfolio for their pension savings and determine the portion of funds to be managed. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
A new article "Investment Portfolios of Pension Assets" has been introduced into the Social Code of Kazakhstan. It establishes the possibility of transferring pension savings to the trust management of a management company of the investment portfolio chosen by the depositor.
The new rules apply to the following categories: - depositors of mandatory pension contributions; - individuals for whom mandatory professional pension contributions are paid; - depositors of voluntary pension contributions; - recipients of pension payments from the unified accumulative pension fund.
To do this, a citizen must submit an application to the UAPF (Unified Accumulative Pension Fund) to select an investment portfolio manager and indicate the preferred option for placing pension assets.
Three investment strategies are offered to Kazakhstanis
According to the law, investment portfolio management companies can form several types of investment portfolios for pension assets. Citizens are offered three options: - **Conservative portfolio** – an investment strategy with the lowest risk; - **Balanced portfolio** – a strategy that provides an optimal balance between profitability and risk; - **High-risk portfolio** – an investment strategy with the potential for high returns but also high risk.
Depositors can independently choose one or more investment portfolios and also determine the amount of pension savings transferred to trust management. The procedure for forming such investment portfolios is established by the authorized body for regulation, control, and supervision of the financial market.