Regulatory Alerts2025-05-19
Added · Updated
Pension Assets Management and Temporary Fluctuations
The National Bank of Kazakhstan addresses recent temporary decreases in pension account balances, attributing the -1.05% first-quarter revaluation to rising government bond yields and tenge appreciation against the dollar. Deputy Governor Aliya Moldabekova emphasizes that these are unrealized paper losses offset by long-term real returns, with the 22.6 trillion KZT UAPF portfolio maintaining a 60/40 domestic-to-foreign currency split and investing in high-rated quasi-public sector bonds. To improve retirement sustainability, the regulator plans to retain the 40% foreign currency allocation while shifting those assets toward higher-yield instruments like equities and alternative funds, alongside expanding private management company options to 50% of savings.