Fixed Income Market Presentation
Institutional money: pension funds reform
Pension assets¹ in Russia
RUB bln
Voluntary allocations in non-state pension funds
Non-state pension funds - mandatory savings and
pension reserves
State pension fund - mandatory savings
As % to GDP
5,6%
3830
3975
3102
832
900
2454
758
1 095
1 138
700
1556
666
391
643
153
1 363
1 678
1 903
1 937
760
2010
2011
2012
2013
2014
Key highlights
Positive regulatory framework development:
CBR became a regulator of the pension system
■ Adopted changes in pension funds regulation:
"One year non-loss rule" was abolished
Investment horizon of NPFs2 was extended to 5 years
Customer incentive to stay with the fund manager not less than 5
years
Guarantee fund mechanism (similar to Deposit Insurance Agency in
the banking system)
Number of individuals, whose pension savings are invested in non-state
pension funds increased from ~1 mln in 2007 to ~28 mln in 2014
On Apr, 2015 the government made a decision to return funds for
2H'13-14 (clients who transferred their pension money from the State
fund to NPFs - more than RUB 500 bln), which were under moratorium.
New inflows to NPFs for 2014-2015 remains under moratorium and to
be utilized for PAYGO system funding
New contributions to NPFs will start from 2016
Exposure to equities is limited
Pension system Investment portfolio
State pension fund
12%
2%
Fixed income
☑
MOSCOW
EXCHANGE
86%
Deposits
2014²
NPFs
■ Cash
■Fixed income
■ Deposits
Equities
51%
44% 44%
5%
2%
7%
55%
32%
41%
Other
33%
29% 30%
72,5%
2,5%
2,7%
2,5%
21,1%
Cash
Equities
Other
RUS CHE³ NLD
JPN
CAN GBR USA AUS
Source: OECD, investfunds.ru, FSFM, Economist Intelligence Unit, Russian State Statistics Agency (Rosstat), Tower Watson
1 Obligatory savings, not including reserves
2 For Russia mandatory savings managed both by NPFs (Non-state pension funds) and Pension fund of Russia
3 Chile
4 Source: Rosstat. GDP for 2014.
18View entire presentation