Russian Financial Sector Update

Bank of Russia FINANCIAL SECTOR OVERVIEW The Central Bank of the Russian Federation NON-STATE PENSION FUNDS Bank of Russia aims to strengthen local institutional investor base: non-state pension funds Non-government pension system has gone Figure 46: Pension assets in Russia (RUB tn) through a number of changes: 5 45 ✓ 'one-year non-loss' rule was extended to 'five- year non-loss' rule ✓ stress-testing mechanism introduced ✓ customers are now encouraged to stay with the same fund for not less than 5 years ✓ since 2014 the Deposit Insurance Agency (DIA) guarantees the nominal value of mandatory savings ✓ non-state pension funds are to bear fiduciary responsibility (since March 18, 2018) ✓ non-state pension funds are to disclose their investment portfolios Non-state pension funds. Corporate savings Non-state pension funds. Mandatory savings State pension fund. Mandatory savings 1.11 1.21 0.99 0.83 0.90 1.71 2.15 2.47 1.09 1.13 1.90 1.94 2.06 2.02 1.91 2013 2014 2015 2016 2017 Figure 47: Pension system asset allocation (as of December 31, 2017, %) Cash Equities Corporate bonds Government bonds Other Source: Bank of Russia 4% 4% 21% 24% 38% 12% 48% 35% 37% 0% 21% 20% 13% 11% 12% State pension fund NPFs. Mandatory savings NPFs. Corporate savings

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