The total portfolio of pension funds grew to 6.9 trillion rubles in the third quarter

The total portfolio of pension assets of non-state pension funds (NPF) and the Pension Fund of Russia (PFR) increased by 1.4% in the third quarter, to 6.9 trillion rubles. This is stated in “Overview of key indicators of NPFs” Bank of Russia.

“The value of the total portfolio increased by 1.4%, to 6.9 trillion rubles, the dynamics of individual segments was generally similar,” the review says. The volume of pension savings (PN) of NPFs increased by 1.2%, to 3.1 trillion rubles, the volume of PV of the PFR – by 1.7%, to 2.2 trillion rubles. The amount of pension reserves increased by 1.6% to 1.6 trillion rubles.

In the third quarter, all segments of the pension market continued to grow, but at a slower pace than in the second quarter, the review says. “The increase in portfolios was facilitated by a positive return on investment, but it turned out to be lower than in the second quarter due to the deterioration in the dynamics of the corporate bond market, which are the main instrument for investing pension funds,” explains the Central Bank.

The profitability of NGO and PFR pension funds for the nine months of 2022 was higher than for the same period of the previous year. “Then pressure on yields was exerted by the weak dynamics of the debt market in the absence of the ability to fix the value of assets on a certain date, which was provided by NPFs as a support measure in 2022,” the review says.

The total portfolio of pension funds of NPFs grew in the third quarter largely due to the profitability from investing funds and fixing the value of securities. “The maximum return on investing PN NPFs was 10.0%, the minimum: -1.25%,” follows from the review.

As follows from the data of the National Association of Non-State Pension Funds, the number of participants in voluntary pension programs in the Russian Federation at the end of 2021 amounted to 5.2 million people, the majority are members of corporate NGOs (3.8 million people, including 1.4 million recipients, an average of 3.9 thousand rubles per month), another 2.1 million people (including 70 thousand recipients, on average 2.8 thousand rubles per month) participate in individual pension programs.

Read more about accumulation tools in the publication “Kommersant” “The financial market is looking for retirement”.

Maria Fedotova