Non-state pension funds in KR increased their client base by 12%, but reduced their assets to 2022 levels

Kyrgyzstan's two non-state pension funds increased their customer base by 12% in 2024. They now have 3,348 members, compared to 2,988 a year earlier. This growth is driven by contributors to mandatory pension insurance (+19%) and beneficiaries (+67%).

At the same time, the total volume of pension assets fell by a quarter, from 244.8 million to 180.2 million KGS. In essence, the market has rolled back to the levels of two years ago.

Financial results also indicate that the system is still on a knife edge. In 2023, both funds recorded losses. In 2024, only the Kyrgyzstan NPF was in the black, earning 2.5 million KGS. The second player, Dordoi Salym, is still unprofitable, although it reduced its losses from 6,600 to 1,000 KGS.

The investment portfolio of the funds has grown almost 30 times in two years, but the structure of the investments speaks for itself: 94% of the funds are placed in government securities, and the rest is in deposits. In other words, the funds are choosing the most conservative strategy possible.

At the same time, the year turned out to be successful for the clients of the Kyrgyzstan NPF. Their investment income from mandatory pension insurance for 2024 has been approved at 11.8%. The corresponding decision was made by the fund's sole shareholder, Akylbek Arstanbekov, at the annual shareholders' meeting.

According to the documents, the expenses related to the investment of pension savings amounted to 32,400 KGS for the asset management company Biman Invest and 92,200 KGS for the fund itself.

As remuneration for managing pension assets, Biman Invest received 3% of the investment income on the NPO — 126,900 KGS. The Kyrgyzstan NPF also received 3% of the investment income from managing pension assets under compulsory pension insurance, or 315,530 KGS. It allocated this money to the reserve fund for compulsory pension insurance.