Pension funds prefer deposits and mutual funds to shares in Kyrgyz companies

The share of local issuers in the structure of pension asset investments remains symbolic — only 0.01%. This is evidenced by data on the distribution of the investment portfolio of pension assets under trust management.

Pension funds in the country continue to be invested primarily in low-risk instruments.

Thus, 53% of assets are placed in mutual investment funds (PIFs), another 26% in bank accounts, 7% in government securities, 6% in deposits, and 5% in business lending.

At the same time, bonds account for only 3%, and shares of Kyrgyz companies are practically not represented.

‘This may indicate a limited level of trust on the part of management companies or increased risks associated with investments in these financial instruments,’ according to Finnadzor.