Pension funds of NPF by the end of 2019 reached 4.27 trillion rubles

The amount of pension savings non-state pension funds (NPF) for the fourth quarter increased by 2.4% and by the end of 2019 reached 2.86 trillion rubles, the volume of pension reserves by 3.5% to 1.41 trillion. This is stated in the information-analytical comments on “Trends in market NPF”. Thus, pension funds NPF for the fourth quarter increased by 2.8% and amounted to 4.27 trillion roubles.

Investments in the real sector of the economy remain dominant in the portfolio of pension savings: the share of such investment on the basis of 2019, made up 38% (an increase of 0.9 percentage points for the fourth quarter and by 2.7 percentage points yoy). The portfolio of pension reserves investments are redistributed in the real sector from the public and financial sectors: the sum of investments in the financial sector decreased over the quarter by 1.7% to 689,33 billion rubles, and the cost of public sector investment decreased by 2.6%, to 250,3 billion. The share of real sector in the portfolio of pension reserves amounted to 33.5% (an increase of 3.6 percentage points over the quarter and by 4.8 percentage points over the year).

The amount of investment of pension savings in the real sector for the fourth quarter rose 4.8%, to 1,087 trillion rubles, pension reserves — by 16.3%, to 474,65 billion. A number of issuers in the real sector with high credit quality, offer a premium to the OFZ rates than used pension funds in the face of rising prices on debt instruments. Funds continue to increase the share of investments in the field of metallurgy and mining industries, as well as of telecommunications and information technology.

In the fourth quarter of 2019 continued growth of the value in the NPF portfolio of debt instruments — corporate bonds and government securities. In the corporate bonds invested more than half of the pension savings (1.47 trillion roubles, an increase of 2% over the quarter) and more than 40% of pension reserves (629,69 billion, a growth of 7% for the quarter). In the IV quarter the amount of investment of pension savings in the stock has increased almost on 14% – up to 177,3 billion, mainly due to the positive dynamics of the stock market and investing in equities. In equities invested 6.2 per cent of pension savings and 11.3% of pension reserves.

The value of investments of pension savings in government securities increased by 6.8% (to 853,87 billion) mainly due to increased investment in this asset class. The amount of investment of pension reserves in government securities rose by 3% to 181,85 billion, mainly due to positive revaluations of debt instruments on the background of reduction of the key rate of the Bank of Russia. The share of government securities in the portfolio of savings amounted to 29.9% (an increase of 1.2 percentage points per quarter), the portfolio reserves of 12.9% (unchanged).

During the fourth quarter of two NPF, working only on non-state pension provision (NGOs), left the market in connection with the rejection of the license. Thus, at year-end the market there are 47 NPF, 31 of which combines the activities of mandatory pension insurance (OPS) with NGOs, two NPF operate only on OPS, 14 — only NGOs.

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11 Feb 2020