National Bank Governor Timur Suleimenov stated that the domestic financial market cannot absorb 27 trillion tenge in pension savings, which is why the fund diversifies investments across different assets, issuers, and currencies.
Suleimenov was answering a question about the tenge’s exchange rate impact on UAPF returns, which fell to 9.91% since the beginning of the year as the national currency strengthened. He explained that pension assets keep growing through employer contributions and investment returns, forcing the National Bank to seek new investment avenues as the portfolio expands.
The regulator chief noted that putting all savings into domestic assets—bank deposits, stocks, and bonds—is impossible because Kazakhstan’s securities market is not sufficiently developed. Currency diversification helps shield pension savings from foreign exchange risks, even though a stronger tenge can lower the value of foreign assets when translated into the national currency.
Starting September 7, citizens can transfer up to 100% of their savings to private asset managers.