Enlarged Kazakhstan's Retirement Fund Assets: New Details Unveiled
Revamped Pension Management in Kazakhstan: A Game Changer
The winds of change in the pension management landscape of Kazakhstan are all too apparent, with a staggering surge in foreign firms' involvement, as disclosed by Liter.kz, via the EPF's press service.
This increasing trend toward external management is serving as a springboard for Kazakhstan's pension system, fostering its expansion and strengthening its ties with international markets.
As of early April 2025, approximately 21% of the overall investment portfolio, totaling 22.3 trillion tenge, has been allocated to foreign managers. This translates to an impressive 4.7 trillion tenge under the supervision of international giants.
The surge in pension funds delegated to foreign companies has grown by an astonishing 90% over the past year, despite a slight dip at the beginning of 2025, according to the fund's message.
Interestingly, these international managers aren't just handling developing country bonds but also global equities. Companies such as Invesco, HSBC, UBS, and the mighty BlackRock have sealed deals to manage a substantial chunk of Kazakhstan's pension savings. Additionally, corporate bond specialists like Principal Global Investors and PGIM have also entered the fray, managing billions of tenge and contributing to the stability and enhanced yield of pension savings.
Exploring Further
- Foreign Control of Kazakhstan's Pension Assets Revealed
- Clarifying the Tax Exemption for Kazakh Pensioners
- Expanding Horizons: Using Pension Savings for Dental Care and Pediatric Medical Aid
Additional Insights
- The total value of pension assets under the management of Kazakhstan's National Bank (NBRK) and the Investment Portfolio Manager (IPM) reached approximately KZT 22.7 trillion (nearly 22,723.37 billion tenge) in 2025.
- The strategic diversification of investment portfolios, facilitated by a mix of financial instruments across various currencies, countries, and sectors, has driven the significant accumulation of these assets.
- The National Bank of Kazakhstan, as the main trustee and asset manager, deliberately maintains a 40% share of foreign currency assets to minimize currency risk and boost returns.
- Although direct foreign ownership of pension funds is regulated, the role of professional investment managers, possibly including foreign entities or partnerships, in managing portions of pension funds is on the rise.
- Transparent regulations and a conducive investment environment in Kazakhstan make it an attractive destination for foreign asset managers, aligning with global best practices.
In summary:
- Kazakhstan's pension assets under foreign management have witnessed explosive growth, amounting to over KZT 22.7 trillion in 2025.
- The National Bank of Kazakhstan, as the primary trustee and asset manager, guides investments toward a balanced and diversified portfolio across government securities, corporate bonds, and foreign currency assets.
- Strategic management of foreign currency holdings, currently maintained at 40% through active foreign exchange operations, bolsters portfolio diversity and return potential.
- Foreign management influence is growing through professional investment managers like the IPM, indicative of an expanding role for global partners in Kazakhstan's pension asset management framework.
- This growth and diversification represent Kazakhstan's commitment to modernize its pension system, maximize returns, and manage risks using a blend of domestic and international investment strategies.
- The growth of foreign management involvement in Kazakhstan's pension sector has led to the management of approximately 22.7 trillion tenge by foreign entities and partnerships.
- The increasing role of professional investment managers, such as Invesco, HSBC, UBS, BlackRock, Principal Global Investors, and PGIM, underlines the expanding influence of foreign investment in Kazakhstan's pension assets.
- By investing in a diversified portfolio that includes global equities, developing country bonds, and foreign currency assets, these international managers aim to ensure stability and enhanced yield for Kazakhstanis' pension savings.
- The strategicallocation of 40% of foreign currency assets by the National Bank of Kazakhstan helps minimize currency risk and boost returns for pension fund investments.
