The Russian Pension Fund gained a total of 2.97 billion rubles on pension savings deposited in 2016, with an average annual profitability of 10.58%. The 2016 inflation stood at 5.4% in Russia.
For comparison, Vnesheconombank state management company posted profitability of 10.6%, and private management companies yielded 13.9% profitability. The Central Bank website has yet to post profitability of private pension funds in 2016.
By law, PFR may invest (temporarily place) insurance contributions of the mandatory pension insurance system in lawful assets until the moment of their transfer to management companies and private pension funds.
The PFR revenue of 2.97 billion rubles consisted of 1.4-billion-ruble return on placed mandatory pension insurance contingency funds and 1.57-billion-ruble return on placed current insurance contributions, as well as additional insurance contributions and employers’ contributions.
In all, PFR held 17 depositary auctions in 2016 (including ten at the Moscow Exchange MICEX (Moscow Interbank Currency Exchange) – RTS (Russian Trading System) platform and seven at the St. Petersburg Currency Exchange platform), which resulted in the conclusion of 38 deposit agreements. The turnover of funds placed by PFR exceeded 300 billion rubles. Deposit rates varied from 9.61% to 11.75% per annum.