Booming Foreign Management of Kazakhstan's Pension Funds
rika, reporting from Liter.kz, shares that Kazakhstan's pension assets are steaming ahead in the hands of foreign companies. According to the press service of the EPF, the trend shows no signs of slowing down.
Bearing Witness to the Boom
Increased Pension Assets in Kazakhstan: The Culprit Unveiled
The growing popularity of external management in Kazakhstan has opened a new chapter in the nation's pension system, paving the way for international partnerships. By April 1, 2025, the total fund assets stood at approximately 22.3 trillion tenge, with a staggering 4.7 trillion tenge entrusted to foreign managers, accounting for nearly a fifth of the investment portfolio.
The Pace of Progression
The rate of growth in the volume of pension assets handed over to international firms for management has nearly doubled over the past year, according to the fund's information announcement. Even though there was a slight dip at the start of 2025, the momentum has continued unabated.
Global Giants at the Helm
The fascinating thing about this trend is the diversity of assets these foreign managers handle. They oversee bonds of developing nations, as well as global equities. Some of the top dogs in the industry taking charge of Kazakhstan's pension funds include Invesco, HSBC, UBS, and the colossal BlackRock. For corporate bonds, firms like Principal Global Investors and PGIM are hard at work, all contributing billions of tenge to improved returns for pension savings.
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Did You Know?
- Kazakhstan's pension assets, managed by the National Bank of the Republic of Kazakhstan (NBRK) and Investment Portfolio Management (IPM), increased to KZT22,723.37 billion as of April 1, 2025.
- The investment portfolio is diversified, with a focus on maintaining a balanced currency distribution—59.94% in the national currency and 40.05% in US dollars.
- The NBRK plays a vital role in managing pension assets, investing in government securities, bonds, deposits, and shares of domestic issuers.
- To maintain stability, the National Bank actively manages foreign currency, purchasing USD 250 million in April 2025 to keep the 40% foreign currency share, with similar purchases planned for May.
- The unique guarantee for mandatory pension contributions in Kazakhstan ensures that contributors maintain their purchasing power despite inflation, with the state stepping in to cover any investment shortfalls.
- The rapid growth in the volume of Kazakhstan's pension assets managed by foreign companies, such as Invesco, HSBC, UBS, and BlackRock, indicates an increasing interest in finance and investing in the nation's business sector.
- The diversified investment portfolio of international firms handling Kazakhstan's pension funds includes bonds of developing nations, global equities, and corporate bonds managed by companies like Principal Global Investors and PGIM, contributing significantly to improved returns for pension savings.
