Akimat of Zhitikarinsky district

Contributors from Almaty, Astana and Karaganda Region Lead in the Number of Transfers to IPMs

Pension Savings of Kazakhstanis: The Role of Investment Income

Pension Savings of Kazakhstanis: The Role of Investment Income

Investment income continues to play a significant role in building the pension savings of Kazakhstanis. As of 1 October 2026, cumulative investment income since the consolidation of pension assets in the UAPF in 2014 amounted to KZT 14.30 trillion. Taking into account pension payments made, the share of net investment income in total pension savings amounted to approximately 40%. The results of the funded pension system over its entire existence also demonstrate the importance of long-term investment. Since the establishment of the funded pension system in 1998, cumulative investment returns as of 1 October 2026 reached 1,090.84%, compared with inflation of 1,014.83% over the same period. These figures confirm the importance of assessing investment performance over the long term. Pension savings are accumulated over decades. Throughout this period, incoming contributions are invested in various financial instruments, while the income earned increases contributors' pension capital and continues to generate further investment returns. Investment returns vary depending on financial market conditions. Investment performance is influenced by interest income from securities and other financial instruments, changes in their market value, and exchange rate fluctuations. During certain periods, market and currency revaluations may have a negative impact on overall investment performance. Such fluctuations are typical of financial markets, making it advisable to assess the effectiveness of pension asset management over an extended period. As a result of investment activities, as well as fluctuations in foreign exchange rates and changes in the market value of financial instruments, accrued investment income from mandatory pension contributions, mandatory occupational pension contributions and voluntary pension contributions amounted to KZT 766.32 billion from the beginning of 2026 through 1 October 2026, while accrued investment income from mandatory employer pension contributions amounted to KZT 139.39 billion. It should be mentioned that the amendments to the Social Code of the Republic of Kazakhstan came into force on 7 September 2026, significantly expanding the rights of UAPF contributors to independently select investment strategies and portfolios for managing their pension savings. Contributors can now transfer up to 100% of their pension savings to the trust management of Investment Portfolio Managers (IPMs). From 2026, contributors can choose one of three investment strategies offered by IPMs, which differ in terms of risk level, expected returns and investment horizon. Each IPM manages assets under one selected investment strategy. A composite benchmark has been established for each type of investment portfolio as a reference indicator for evaluating the returns achieved by IPMs. The entire system of investment management and accounting of pension assets is transparent: every contributor can view their investment income through their personal account on the enpf.kz website or in the mobile application. Information on the investment management of UAPF pension assets and the financial instruments in which these assets are invested is published on the official UAPF website (www.enpf.kz) under "Statistics and Analytics / Investment Management of Pension Assets" section, as well as on the invest.enpf.kz portal. UAPF was established on August 22, 2013, on the basis of JSCAccumulated Pension Fund SAPF. The founder and shareholder of UAPF is the Government of the Republic of Kazakhstan, represented by the State Institution "State Property and Privatization Committee" of the Ministry of Finance of the Republic of Kazakhstan. The National Bank of the Republic of Kazakhstan carries out trust management of UAPF pension assets. In accordance with pension legislation, UAPF collects mandatory pension contributions, mandatory employer pension contributions, mandatory occupational pension contributions, and voluntary pension contributions. The Fund also credits and records voluntary pension contributions formed from unclaimed guarantee compensation for guaranteed deposits, transferred by the organization responsible for mandatory deposit insurance in accordance with the Law of the Republic of Kazakhstan "On Mandatory Guarantee of Deposits Placed in Second-Tier Banks of the Republic of Kazakhstan", and ensures the payment of pensions. The Fund also maintains records of targeted assets and targeted claims, records and credits targeted savings (TS) to targeted savings accounts, transfers TS payments to recipients' bank accounts, and records the return of TS in accordance with the procedure established by the Government of the Republic of Kazakhstan under the "National Fund for Children" program. (For more information, visitwww.enpf.kz).

Contributors from Almaty, Astana and Karaganda Region Lead in the Number of Transfers to IPMs

More and more Kazakhstanis are visiting the investment portal invest.enpf.kz. In September 2026, legislative amendments came into force granting contributors the right to transfer both their voluntary pension savings and pension savings formed from mandatory pension contributions and mandatory occupational pension contributions in full to private asset managers of their choice. Contributors now have more opportunities to choose an asset management company and invest their accumulated funds. Pension savings can also be distributed among several Investment Portfolio Managers (IPMs) and investment portfolios, providing more options for managing pension capital. The opportunity to transfer pension savings in full to private asset managers has contributed to an increase in the number of transfers to Investment Portfolio Managers (IPMs). While 73,456 transfers totaling approximately KZT 66.7 billion were made between 1 January and 31 August 2026, a further 56,956 transfers totaling approximately KZT 92.0 billion were made over the much shorter period from 1 September to 13 October 2026. The most active contributors transferring their pension assets to IPMs are residents of Almaty, Astana and Karaganda Region. Detailed statistics for the respective periods are provided below: Data for the period from 01.01.2026 to 31.08.2026 Region Transfer Amount (KZT) Number of transfers Total 66 659 094 302,02 73 456 Akmola Region 1 301 404 104,10 1 919 Aktobe Region 3 786 064 527,33 4 359 Almaty Region 24 711 228,07 066 Atyrau Region 3 943 939 767,44 3 791 East Kazakhstan Region 1 527 427 793,28 2 045 Zhambyl Region 1 483 973 244,91 2 134 West Kazakhstan Region 2 292 443 937,59 2 442 Karaganda Region 5 265 611 248,47 5 963 Kostanay Region 1 930 290 043,12 2 855 Kyzylorda Region 1 746 149 958,85 2 378 Mangystau Region 3 496 995 021,36 3 734 Ulytau Region 46 219 700,07 054 Abai Region 1 059 677 818,21 1 685 Zhetysu Region 933 400 854,55 1 349 Pavlodar Region 3 494 934 297,77 3 575 North Kazakhstan Region 804 079 529,47 1 160 Turkistan Region 1 987 795 960,34 2 784 Almaty City 17 633 839 058,41 16 983 Astana City 10 823 707 427,56 10 278 Shymkent City 3 076 428 781,12 3 902 Data for the period from 01.09.2026 to 13.10.2026 Region Transfer Amount (KZT) Number of transfers Total 91 931 522 402,00 56 956 Akmola Region 1 832 771 887,08 1 414 Aktobe Region 4 294 913 293,91 3 025 Almaty Region 27 664 930,76 061 Atyrau Region 4 328 959 177,31 2 410 East Kazakhstan Region 2 511 877 675,44 1 685 Zhambyl Region 2 104 796 055,23 1 798 West Kazakhstan Region 3 000 693 685,11 1 902 Karaganda Region 7 147 355 461,33 4 722 Kostanay Region 3 128 383 687,11 2 279 Kyzylorda Region 1 859 242 703,51 1 430 Mangystau Region 4 550 479 005,45 2 621 Ulytau Region 61 280 525,21 058 Abai Region 1 342 445 552,78 1 201 Zhetysu Region 1 451 475 574,53 1 186 Pavlodar Region 3 793 095 242,35 2 636 North Kazakhstan Region 1 304 216 236,38 972 Turkistan Region 2 278 055 124,56 1 806 Almaty City 27 419 578 835,28 14 327 Astana City 15 735 002 693,16 8 680 Shymkent City 3 759 235 055,51 2 743 Before transferring pension savings to an Investment Portfolio Manager (IPM), contributors should carefully review the management terms and the specific features of the investment strategy. This choice affects how their funds will be invested and the risks associated with these investments. First of all, contributors should review the IPM's investment declaration, which specifies the investment objectives, approaches and restrictions on asset composition. It is also important to check the management fees and understand which financial instruments the asset management company uses. Investment returns over different periods also deserve particular attention. Past performance helps assess the portfolio's results, but it should be noted that it does not guarantee similar returns in the future. The level of risk should also be taken into account, as asset values may fluctuate depending on market conditions. Contributors can compare the offers of asset management companies and obtain information on the terms for transferring pension savings to IPMs through the investment portal invest.enpf.kz. As of 1 October 2026, the number of unique users of the invest.enpf.kz portal amounted to approximately 82 thousand, including around 27.5 thousand in September, when contributors' investment opportunities were expanded. By using this digital platform, each contributor can make an informed decision and assess whether a company's investment strategy aligns with their expectations and willingness to accept investment fluctuations. UAPF was established on August 22, 2013, on the basis of JSCAccumulated Pension Fund SAPF. The founder and shareholder of UAPF is the Government of the Republic of Kazakhstan, represented by the State Institution "State Property and Privatization Committee" of the Ministry of Finance of the Republic of Kazakhstan. The National Bank of the Republic of Kazakhstan carries out trust management of UAPF pension assets. In accordance with pension legislation, UAPF collects mandatory pension contributions, mandatory employer pension contributions, mandatory occupational pension contributions, and voluntary pension contributions. The Fund also credits and records voluntary pension contributions formed from unclaimed guarantee compensation for guaranteed deposits, transferred by the organization responsible for mandatory deposit insurance in accordance with the Law of the Republic of Kazakhstan "On Mandatory Guarantee of Deposits Placed in Second-Tier Banks of the Republic of Kazakhstan", and ensures the payment of pensions. The Fund also maintains records of targeted assets and targeted claims, records and credits targeted savings (TS) to targeted savings accounts, transfers TS payments to recipients' bank accounts, and records the return of TS in accordance with the procedure established by the Government of the Republic of Kazakhstan under the "National Fund for Children" program. (For more information, visitwww.enpf.kz).

The Number of Services Provided by the UAPF Since the Beginning of the Year Exceeded 40 Million

Pension Savings of Kazakhstanis Increased by KZT 2.60 Trillion Over 12 Months