Investment of pension funds and mutual funds: new rules

The Bank of Russia has changed requirements to investment of pension savings non-state pension funds (NPF) and assets of investment funds (if). The new requirements should enhance investment opportunities in such funds and if and to reduce the negative effects of the pandemic coronavirus for financial market participants. Guidance the regulator has approved the Ministry of justice, they shall enter into force on 21 may 2020.

According to the guidelines from 1 July 2020 1 July 2021 transferred the next lower concentration limits established for investment of pension savings pension funds and assets match. In addition, authorizes the investment of pension funds of NPF in units of exchange unit of if.

To maintain the availability of mortgage lending, the Bank of Russia on a permanent basis, has allocated a separate 5% limit on investing pension savings in bonds with mortgage collateral with a high credit rating. At the same time these papers will be excluded from the 10% limit on investments in individual assets with the additional level of risk, and the limit gradually by July 1, 2022 will be reduced to 7%.

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