NPFs increase pension savings and reserves in the midst of equity market growth
In 2021 Q2, the market of non-governmental pension funds (NPFs) grew slightly after the zero dynamics of the previous months. NPFs’ pension savings were up by 1.2% to 3.0 trillion rubles, and pension reserves — by 1.4% to 1.5 trillion rubles. This is stated in the Review of Key Indicators of Non-governmental Pension Funds for 2021 Q2.
In the midst of the equity market growth, which had a significant impact on the pension money dynamics, the funds sold a part of the shares to preserve the structure of investment portfolios. The proceeds were used, among other things, to increase investments in government and sub-federal bonds. In particular, the funds have purchased bonds of the Moscow government, which have high credit ratings and offer a premium to OFZ.
As of the end of Q2, the return on investment of NFPs’ pension savings amounted to 5.0% per annum and is still ahead of the return on the portfolio of the Pension Fund of Russia.