Performance fee for each NPF portfolio: draft Bank of Russia Ordinance
The Bank of Russia proposes to amend the procedure for calculating the amount of remuneration for non-governmental pension funds (NPFs), depending on the method of investing pension reserves.
If NPFs maintain separate portfolios for different strategies of non-governmental pension provision and the long-term savings programme, they will calculate investment income for each strategy separately in order to determine the amount of their remuneration.
If an NPF achieves a positive result for a specific portfolio, it will be entitled to a performance fee. This is the variable component of the remuneration, which NPFs receive in addition to the fixed amount for asset management.
This approach will allow NPFs to report their profitability more fairly and receive remuneration for each strategy, instead of using average values for all pension reserves.
The amendments are to come into force on 1 January 2027. This means that the variable part of NPFs’ remuneration for 2026 will be calculated according to the new rules.