In Kazakhstan, the number of depositors fully entrusting their pension savings to private management companies doubled in a month. This was reported by Qazaqyia.kz citing Sputnik Kazakhstan.
This was stated by Aliya Moldabekova, Deputy Chairman of the National Bank. From September 7 this year, Kazakhstanis were allowed to transfer 100% of their pension savings to private management companies. In this case, the sufficiency threshold for early use of savings is not taken into account.
According to the National Bank, previously the volume of pension assets transferred to private management companies had long been at the level of 70-80 billion tenge. Now this figure has reached 200 billion tenge.
«From September 7, after permission for full transfer of savings was granted, about 100 billion tenge was transferred,» said Aliya Moldabekova at a briefing in Astana.
How are pension savings managed?
Private management companies can invest pension assets transferred to trust management in the financial markets of Kazakhstan and abroad. In particular, funds can be placed in securities and other permitted financial instruments.
Investment income may come from interest on securities, changes in the market and currency value of financial instruments, as well as from assets under external management. However, investment income is not guaranteed: depending on market conditions, the value of assets may both rise and fall. Therefore, when choosing a management company, one should consider its investment strategy, risk level and previous results.