NPFs opt for money market instruments
The growth rates of funds in the pension system nearly doubled over the past quarter. The rise was driven by returns on investment and the inflow of money into the long-term savings programme.
Non-governmental pension funds (NPFs) reduced investment in shares due to a decline in their market prices. Concurrently, NPFs slightly increased their participation in the auctions of the Russian Ministry of Finance, namely by purchasing fixed coupon bonds. Nevertheless, the percentage of debt securities in NPFs’ portfolios generally declined as well.
During the period of volatility, NPFs opted for instruments ensuring higher yields when monetary policy is tightened. Specifically, there was a rise in claims on repos, inflows into deposits, and funds held in current accounts.
More details are available in the Review of Key Indicators of Non-governmental Pension Funds for 2024 Q3.