Distributing a Profit of 371 Billion Tenge to Kazakhstan Residents: EPSF Moves into the Black
The Unified National Pension Fund (ENPF) in Kazakhstan has reported a significant increase in pension funds under the trust management of the National Bank, amounting to approximately 963.01 billion Tenge since the beginning of 2025. This growth is accompanied by an impressive 15.06% return on pension assets over the past 12 months, as of June 2025.
The ENPF's long-term investment strategy focuses on a diversified portfolio, encompassing government securities, corporate bonds, Exchange Traded Funds (ETFs), and foreign assets. As of mid-2025, the portfolio under trust management by Halyk Finance JSC and others is divided as follows:
- 25.26% in government securities of Kazakhstan’s Ministry of Finance - 11.25% in bonds of second-tier Kazakh banks - 9.90% in corporate bonds of foreign issuers - 8.41% in units of Exchange Traded Funds (ETF) - 8.04% in government securities of foreign states - 6.55% in bonds of quasi-public Kazakh organizations - 5.90% in corporate bonds issued by Kazakh entities - 2.88% in shares and depositary receipts of foreign issuers
To manage currency risk and inflation preservation, the currency allocation is approximately 58.41% in Kazakhstani tenge (national currency) and 41.59% in US dollars.
Despite these impressive returns, the ENPF has not yet covered the inflation accumulated since the beginning of 2025, which currently stands at around 7%. The return rate for the first half of 2025 was 1.51%, significantly lower than both the inflation rate for the same period and the return rate for the last 12 months.
It is important to note that the ENPF emphasises that the return on pension funds over short-term periods is not an indicator of their management efficiency. An objective analysis of investment income should be conducted over a period of at least one year, as stipulated by the ENPF.
The ENPF's strategy aims to maintain this diversified exposure to both domestic and international instruments and manage currency composition prudently to protect real pension savings value against inflation risks. The policy reforms also allow contributors flexibility in transferring portions of their pension savings to trust management or annuity agreements, enabling personalised approaches to risk and return balancing.
In summary, the ENPF's long-term investment strategy to cover inflation includes diversified asset allocation, balanced currency exposure, active portfolio management aiming for returns exceeding inflation rates, and policy flexibility allowing contributors’ choice to maximise returns or secure stable annuities. This aligns with Kazakhstan’s pension system modernization objectives to safeguard pension funds' purchasing power against inflation over time.
- The Unified National Pension Fund (ENPF) in Kazakhstan has a long-term investment strategy that involves financing various domestic and international instruments such as government securities, corporate bonds, Exchange Traded Funds (ETFs), and foreign assets.
- To achieve inflation coverage, the ENPF emphasizes maintaining a diversified asset allocation, managing currency composition prudently, and aiming for returns exceeding inflation rates, while also providing contributors flexibility in transferring portions of their pension savings.
