A stable market has increased savings – Kommersant Newspaper No. 198 (6678) dated 10/29/2019

Activities of Vnesheconombank

For 16 years now (as of 2020), Vnesheconombank has been fulfilling its obligations as a state company. Its main function is the work of money (investing). The bank receives these funds from the Russian Pension Fund.

Although Vnesheconombank is in “reliable” hands, this still does not guarantee the constant stability of pension increases. After all, the company's constant profit will sooner or later be replaced by a deficit. In this case, the money can be returned, but only if the amount was paid together with your employer.

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Statement Hello! I was very surprised when I received a letter saying that I had written an application to VEB Management Company, which I actually never wrote! From the very beginning, I was a member and believed that I was a member of the Russian state pension fund. I ask you to answer my question and exclude me from your fund and return me to the state pension fund of the Russian Federation.

future pensioners, including the so-called “silent people” who did not choose for themselves any of the portfolios of state management companies or portfolios of private management companies, and did not transfer their savings to non-state pension funds. Vnesheconombank also manages the funds of citizens who have chosen one of the State Management Company portfolios.

How to place a funded pension in Vnesheconombank?

It is necessary to take into account the fact that the Pension Fund is Vnesheconombank’s insurer. Therefore, the application for the placement of benefits must be submitted accordingly to the last option. To submit, you must go to this branch in person. But this can be done without leaving home (then you will have to “tinker” with the papers so that the notary can sign).

In addition to the application to the Pension Fund, you must provide:

a document identifying the person (in most cases this is a passport of a citizen of the Russian Federation);
SNILS.

It is possible to deliver documents by a trusted person (official representative). Then he will need the following:

passport of this person;
a power of attorney certifying the right to dispose of the insured persons.

About the state management company Vnesheconombank

VEB invests money in low-risk assets, while receiving returns that are comparable to the inflation rate. Thanks to this conservatism, during the crisis of 2014–2015, VEB increased the savings of future retirees by 12.5–15.8%, which exceeded the figures of most other management companies.

The table provides information on profitability for the period from the beginning of the year to the end of the quarter. The results are also published for 12 and 36 months before the reporting date and for the entire period of validity of the State Guarantee Company. For government securities, the last figure is 5.46–7.9%, for the extended portfolio – 6.42–7.4%. There were also periods of negative growth (2009).

How to choose an investment portfolio?

The investment portfolio includes assets formed under an agreement due to funds from the Pension Fund. Also, it is formed in connection with the investment declaration rule, but these amounts are isolated from other assets.

Vnesheconombank has 2 investment portfolios at its disposal and gives the insured person the right to choose one of them:

Basic government portfolio valuable papers.
Expanded investment portfolio.

The company's domestic bonds, money from the Russian ruble to foreign currencies and securities owned by the state - this all includes the government securities portfolio. In addition, it consists of mortgage-backed securities and bonds of international financial companies.

The funds of the so-called “silent ones” will automatically be transferred to the second category of investment portfolios.

Web uk extended profitability

Since 2003, the pension has been divided into insurance and funded parts.

The latter began to be formed on the individual personal account of a citizen employee - a participant in the savings system at the expense of contributions from the employer.

That is, the funded part of the pension is a specific amount of money in the account of a particular citizen, while the insurance part is points that will be converted into rubles upon reaching retirement age.

For more details, read the article “Who has a funded pension and how is it formed?”

Initially, all accounts with pension savings were created in the Pension Fund - by default. However, everyone had and still has the opportunity to transfer their pension savings to another insurer - for example, to a non-state pension fund. If you have never applied to transfer pension savings, you are a “silent” person.

Leaders and Outsiders

Cumulative inflation over five years was 44.62%. Only 12 non-state pension funds were able to save their clients’ pension money from rising prices. Of the major players, these included NPF VTB (46.13%), Khanty-Mansiysk NPF (45.85%) and NPF Neftegarant (45.07%). But NPF Gazfond (44.6%) and NPF Sberbank (41.9%) failed to outpace inflation.

The outsiders in terms of profitability were funds that had problems due to investing in the assets of Moscow Ring banks and in structures associated with the owners, says Yuri Nogin, director of the ACRA group of financial institution ratings. Thus, the lowest yield is for the funds of the “Future” group, which previously belonged to Boris Mints, who left for London.

The press service of NPF Safmar explained the low profitability by the focus of the investment portfolio on the shares of the largest private banks, which were sanitized. “Also, the shares of Sberbank and VTB gave mixed results,” the fund said. Now NPF is focusing on bonds.

The press service of Sberbank NPF noted that the fund is pursuing a conservative investment policy with the goal of primarily ensuring the safety of pension savings, and plans to compensate for the lag in inflation in the next two years.

NPF Future declined to comment; other low-yield funds did not respond to Forbes’ request.

It should be remembered that in 2014 there was huge inflation, and the fact that some funds were able to outpace inflation is more likely an accident than a pattern, says Pavel Mitrofanov, managing director of the Expert RA agency. “Someone successfully invested in currency, others just had lucky assets,” he says.

According to Biezbardis, in recent years, individual funds have significantly increased their assets due to the massive attraction of clients and the merger of other non-state pension funds.

It has become more difficult for them to fit into the stock market, in which the role of the state and dependence on the cost of energy resources are increasingly growing.

Also, after the 2014 crisis, a number of funds realized the risk of related investments in friendly structures.

2020 also poses significant risks for NPFs - the macroeconomy is not as predictable as we would like, and the geopolitical background is not very favorable, says Biezbardis. Now, in his opinion, funds need to focus on reformatting investment portfolios taking into account accelerating inflation and rising interest rates.

Who manages the money of the silent ones?

The Pension Fund of Russia is a state off-budget fund that deals with many important issues in the field of social security. One of the areas of his work is recording and preserving pension savings of citizens. It would be wrong to simply keep this money in accounts: it would be “eaten up” by inflation.

VEB.RF is a state development corporation whose goal is to develop the Russian economy. Trust management of pension savings of Pension Fund clients is one of the most important activities of VEB.RF. For more details, read the article “On the State Development Corporation VEB.RF.”

State success

VEB's leadership in profitability is due to several reasons. First, funds that significantly increase their client base following a transition campaign may perform comparatively weaker than those that lose clients, says Biezbardis.

“Income from investment is earned throughout the year, but in the case of donor funds, which include the Pension Fund, it is distributed at the end of the year to fewer accounts than at the beginning of the reporting period. At the same time, VEB manages the vast majority of the state fund’s assets. Changes to non-state pension funds and VEB occur once a year, usually at the end of the first quarter,” says the analyst.

Secondly, last year was successful in terms of investing in government bonds, and funds with a conservative strategy showed the best results, notes Biezbardis. Although in the previous two years, as pension asset indices show, it was possible to earn more on stocks, he adds.

VEB's leading position means that the portfolio of government securities turned out to be more effective than high-quality corporate bonds.

This indicates the immaturity of the Russian stock market, where the risk-free instrument shows the highest profitability, says Pavel Mitrofanov.

“The tendency of funds to buy OFZs increased after the Central Bank’s stress tests, during which OFZs turned out to be the most effective securities to pass them,” says the analyst.

According to him, the number of high-quality issuers on the market is decreasing - companies are increasingly going to banks for borrowed funds rather than the stock market, since due to large OFZ auctions, which are held at a large premium, the cost of raising debt capital has increased.
“But we hope that the Ministry of Finance will suspend active placements at an increased rate, which will restore the public debt market,” adds Mitrofanov. Outsiders in terms of profitability are now clearing their balance sheets, and they will need another year and a half to restore their position in the market, Nogin believes.
“But this recovery will largely depend on the law on individual pension capital and its configuration,” the expert concluded. The most interesting question is the success of the NPF Soglasie-OPS, says Nogin. “In my understanding, this is a fund that is associated with the Moscow Commercial Bank, and could be among the players actively investing in bonds of Moscow Ring banks. However, it showed good profitability and was not noticed in problems,” the expert comments.

What does VEB.RF do with the savings of silent people?

The task of the State Management Company of VEB.RF is to ensure the safety of savings, that is, to invest them with a return above inflation. To do this, the corporation invests them in reliable and high-quality assets: government securities, bonds of the largest companies. Part of the funds is placed in deposits of reliable banks.

Funds in the State Management Company are divided into two investment portfolios: an expanded portfolio and a portfolio of government securities. Most clients' funds are invested within an extended portfolio.

In most cases, these are “silent people” - those who did not write applications for transfer of savings. The government securities portfolio of State Management Company VEB.RF is a more conservative and less risky set of investment instruments.

To select it, a citizen must write an application to the Pension Fund.

Is it beneficial to be silent?

At the end of 2020, the yield on the expanded portfolio of VEB.RF State Guaranteed Assets (where, we recall, most of the 1.73 trillion rubles of State Guaranteed Assets savings is located) reached 6.07%. Is it a lot or a little? To answer this question, two comparisons must be made.

Firstly, compare with inflation: for 2020 it was 4.3%. Thus, inflation was exceeded by 1.77% and the task of saving funds was successfully solved.

Secondly, compare it with the average profitability of other major market participants - non-state pension funds. According to Vedomosti, the weighted average return of the largest non-state pension funds for 2020 was 1.7%, that is, 2.5 times lower than inflation and almost 3.5 times lower than the result of the State Management Company VEB.RF.

It is also important to evaluate the average and cumulative returns over several years, and not just one year: this will help to understand how stable the performance results are. As can be seen in the table below, over the past 10 years, both the average and accumulated returns of both investment portfolios of VEB.RF State Management Company exceed, respectively, the average and accumulated inflation for this period.

Source: https://kinogirls.ru/veb-uk-rashirnnyy-dokhodnost/

How to calculate the profitability of pension savings?

The funded part of pension funds consists of an employer insurance contribution of 6% (of the deducted 22%) from the payroll.

Elena Smirnova

Pension lawyer, ready to answer your questions.

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Thanks to this, those who are given wages “in an envelope” will not receive IR.

It may include:

contributions at your own request, which, if anything happens, are easily transferred to non-state pension funds, management companies (state and commercial). The right to choose remains with the citizen;
co-financing program (where money is provided by the state). It came into force in 2008, when the government wanted to increase people's voluntary contributions. But at the moment the program has lost its power and is no longer valid.

Web uk extended profitability by year

If you are primarily interested in profit, then it is better to put your money in an expanded portfolio, since the return on it will be somewhere 2-5% higher (besides, do not forget about inflation, which in fact reduces the amount of real profit) .
However, keep in mind that you will receive high income only if the stock market is calm. If the investment market begins to “storm,” then some deposits may burn out. Although in general the probability of this scenario is very low, such a scenario cannot be completely ruled out.
If you are primarily interested in reliability, then you need to put money in a government portfolio.
Such investment is more reliable, since Russia regularly pays its public debts to private individuals. However, keep in mind that the yield in this scenario will be lower, which is quite critical in the case of high inflation.

Taxpayers who knowingly entered into an agreement with NPF VEB on the transfer of the funded part of the pension to their account. To conclude an agreement, you need to contact any branch of the Pension Fund of the Russian Federation with your passport and SNILS.
The so-called silent taxpayers - if a person works and makes pension contributions, but he has not signed an agreement with any management organization, then in this case the funded part is automatically transferred to the management company at the Pension Fund of Russia, and VEB is appointed as the management company.

In 2020

All contributions to the Pension Fund go towards the insurance pension. The savings part is not replenished; but citizens have the right to dispose of savings already made: transfer them to a non-state pension fund or a management company, where, in their opinion, the funds will be better preserved and increased.

Each investment object is selected by the Trust Management Committee based on the degree of probable risk and return. All transactions and operations are checked by the Internal Control Service for compliance with legal requirements.

Web uk profitability by year

VEB's leading position means that the portfolio of government securities turned out to be more effective than high-quality corporate bonds. This indicates the immaturity of the Russian stock market, where the risk-free instrument shows the highest profitability, says Pavel Mitrofanov.

Web uk extended profitability

Popov recalled that last year VEB transferred about 425 billion rubles to private funds. At the same time, according to him, in order to ensure the return of funds from the portfolio of government securities, VEB had to sell bonds. “But the market situation was good, and we even made money on it,” Popov emphasized.

Vnesheconombank does not invest funds if there is a threat of unjustified risks. Statistics show that finances placed by Vnesheconombank on the investment market demonstrate income that exceeds the inflation rate, which makes it possible to achieve maximum stability in a changeable financial field.

Web uk expanded investment portfolio – the facts speak for themselves

Based on the analysis of the structure of the expanded portfolio, we can conclude that this portfolio is strictly conservative (more than 50% are government securities) and the majority of assets (95%) are denominated in rubles, which is the main risk in the context of growing inflationary processes.

Pension savings held in trust by the State Management Company are divided into two portfolios: the default option (expanded investment portfolio) and the conservative option (investment portfolio of government securities) - for insured persons who want to limit themselves to investments in government securities. The investment portfolio of government securities of the State Management Company has a relatively small volume: in 2014, its value amounted to 10.53 billion rubles. (0.55% of the value of the total investment portfolio of the State Management Company).

The profitability of investing pension savings in the expanded portfolio of VEB Management Company, which invests the savings of “silent people”, amounted to 6.94% for 9 months of 2013, and of the portfolio of government securities - 7.46%. Analyzing the data obtained, we note that more than a third of private management companies that worked with OPS funds showed higher returns on pension portfolios than VEB with an expanded portfolio.

Outsiders with negative returns were Management Company Interfin Capital, Trinfico with two portfolios - “Balanced” and “Long-term Growth”, “Monomakh”, “Ermak”, “Interfinance” and “Industrial Traditions”. With three of these companies, the Pension Fund extended the contract for managing pension savings under compulsory pension insurance.

Funds are invested in web uk extended what is it

Many people still cannot understand what each of these options represents. It's actually not that complicated. The insurance part is a base with which a person’s future pension will be guaranteed in any case.

However, its final size will depend on numerous factors, namely the situation in the state and its budget.

The funded part is organized only by professional market participants and is a mandatory part of the citizen’s future pension, if he chooses this option.

We recommend reading: If you are on sick leave for more than 120 days

They differ from each other in the orientation of the securities and bonds of which they consist. In the first case, we deal only with state-owned companies and enterprises. In the second case, international financial market participants also appear.

Collection of answers to your questions

More than ten years on the services market
. During this time, a solid customer base was recruited and profitable concepts were developed.
Availability of all necessary government documents
- the company has everything in order with licenses and permits.
State as co-founder
.
Therefore, the office’s clients can hope for some support from other government agencies, even in difficult years.
Statistical indicators of profitability
. All of them are freely available and anyone with access to the network can view them.
Choose between several interesting schemes
that allow you to get even more profit.

Usually a comparative description gives a clear idea and answer to the question - which is better? But not in our case, because these are just two proposed options for managing your funds, each of them is good in its own way.

And each of them is not without certain disadvantages; it all depends on the economic situation.

Web uk government securities which fund yield over the years

To develop a strategy for investing funds transferred to Vnesheconombank, a Committee on Trust Management of Pension Savings Funds was created within the state corporation.

The activities of Vnesheconombank as a state management company are conducted in accordance with the legislation of the Russian Federation, regulatory legal acts of the President and Government of the Russian Federation, as well as regulatory documents of the Bank of Russia.

Based on the results of the first quarter of 2020, the 20 largest non-state pension funds (NPFs) showed profitability from managing pension funds. We bought an apartment with a mortgage loan in 2015 at 16%.

We partially paid off the mortgage with maternity capital. We tried this year. The media are full of reports about the transfer of citizens' pension savings to non-state pension funds without their knowledge.

Unscrupulous fund agents

Funds are invested in web uk extended what is it

In accordance with it, the State Management Company, whose functions are currently performed by Vnesheconombank (VEB), invests citizens' pension savings in two investment portfolios. The investment portfolio of government securities includes:

Currently, VEB holds savings of about 54 million.

future pensioners (about more than 80% of the economically active population), including the so-called “silent people” who did not choose for themselves any of the portfolios of state management companies or private management companies, or did not transfer their savings to non-state pension funds.

The payment reserve of the Pension Fund of Russia (PFR), intended for payment of the funded part of the old-age labor pension, was also transferred to the management of VEB.

Web uk profitability

// Previously, most of the population counted on help from the state; a decent pension was one of the guarantees of a good existence after the termination of professional activity.

Instability after the collapse of the Union and the growing level of economic enlightenment played a role.

But there are several reasons why you should not rely solely on your own strength: For those who are at the beginning of their career path, it is worth thinking about choosing this very management company.

And which program is better? These issues will be discussed below. Before considering issues related to the activities of VEB Management Company, we need to remind our readers how the pension system functions. An old-age pension is a monthly cash payment to people who have reached legal retirement age and are no longer working.

About the state management company Vnesheconombank

To place their pension savings in VEB, a citizen writes an application to the local branch of the Pension Fund of the Russian Federation. Its form was approved by Government Decree No. 9P of January 21, 2015. In the text of the document, the submitter indicates which portfolio the GUK should use.

One management company, Vnesheconombank, was appointed by the Government of the Russian Federation . Citizens who have chosen the Pension Fund as their insurer can independently entrust their money to the State Management Company by submitting an application to the local branch of the Fund. VEB also receives funds from “silent people” - those who have not expressed written wishes about their future pension.

Source: https://pravitzakon.ru/migratsiya/veb-uk-rashirnnyj-dohodnost-po-godam

How to conclude a trust agreement?

Trust management is a service that represents the process of managing funds and securities. It is required to be provided by the management company, because All pension funds (the Pension Fund of Russia is no exception) cannot voluntarily engage in these matters.

Therefore, future insurers must necessarily enter into an agreement with the management company (no more than 15 years), which provides the following:

draft investment declaration;
up-to-date financial market indicators used to track management assurance.

Who should be trusted to manage?

Most experts agree that the funded part of the pension should be preserved. It makes the budget system more stable and reduces risks for future retirees

After the situation with Anatoly Motylev’s funds, in which tens of billions of rubles disappeared, I would not risk leaving money in the NPF,” says Sergei Skorokhodov. — Even despite the fact that a system of guaranteeing pension savings has appeared. Because in case of bankruptcy, you receive only the face value and lose all interest.

By transferring your savings to one or another management company, you save on commissions, because NPFs themselves do not place money. They give them to the same managers and, in fact, are just an additional padding,” says Evgeniy Nadorshin.

According to experts, if we compare the state-owned Vnesheconombank and private management companies, the former pursues a more conservative policy and the risk of losing money tends to zero. At the same time, the profitability of private management companies is extremely variable. And, for example, in crisis years the loss can be significant.

It is noteworthy that as of October 1, 2020, insured persons submitted 126 thousand applications for the transfer of funds from NPFs to the Pension Fund. Moreover, in the first half of the year 70 thousand applications were submitted, and in the third quarter (from July to September inclusive) - 56 thousand, the Pension Fund reported.

Choosing a pension option

//www.veb.ru/agent/pension/s_n/

Help "KP"

To transfer pension savings to one of the management companies, including Vnesheconombank, it is enough to submit an application at any branch of the Pension Fund of Russia (PFR) either in person or by mail. This must be done no later than December 31 of this year. Otherwise, your accumulative part will no longer form

VTB Capital Management Portfolio Pension Reserve

Pension savings from the Pension Fund: 1,064,002,073.1 rubles
Yield for 1 year: 5.75%

Return over 3 years: 9.11%

The distribution of companies across groups, which had approximately equal proportions, demonstrates a decrease in the number of companies of the second and third groups.

During 2020, the number of management companies working with the Pension Fund of Russia decreased significantly.

Portfolio of Promsvyaz Management Company

Pension savings from the Pension Fund: 743,882,101.9 rubles
Yield for 1 year: 5.67%

Return for 3 years: 11.34%

The first group (high level of quality of pension savings management by the Pension Fund) included 8 companies with 8 management strategies, the second group (average level of quality of pension savings management) included 11 companies with 11 portfolios, respectively, the third group (low level of quality of pension savings management) included 4 companies with 5 management strategies.

Collection of answers to your questions

Advantages of Vnesheconombank For those who are at the beginning of their career path, it is worth thinking about choosing this very management company. Vnesheconombank has been offering its services in this industry for more than ten years and in all that time it has never failed the expectations of its clients. Maybe not every year could be called successful, but the organization saved clients’ funds and also increased them over the last decade.

Please note => Cashing out maternity capital in 2020 is legal in Perm