Plus €54mln return on investments in 2012

Kosovo Pension Savings Trust (KPST) from investments made in 2012 had the return on investment of 8%, or EUR 54 million in the nominal value. Governing Board considers investment performance as a very good one. The reason for this return was mainly due to the performance of global stock markets.

Value of the share price in early 2012 has been 1.0347, and at the end of the year has reached 1.1170 Euros.

Investment strategy of the Governing Board to place up to 40% of assets in the stock market and up to 60% in the market of absolute return instruments and in those with the inflation target, along with the selection of asset managers, have proven to be successful and have given positive results in investment.

1. Allocated pensions

Also in 2012 the number of new pension beneficiaries continued to grow. New pension beneficiaries in 2012 were 3,264 contributors, from 2.868 that were a year ago. The value of assets distributed to these beneficiaries was approximately 8.2 million Euros, increased from around 5.7 million Euros as it was in 2011. And total assets allocated for the pension, including the remaining payments, was around 8.7 million Euros.

Whereas, since the establishment of KPST until the end of 2012, the number of retirees reached to 16.936, and the total value of funds allocated for these beneficiaries went to over 28 million euro.

Table 1: Funds allocated for new retirees in 2010, 2011, 2012

2. Funds under the management

According to data’s based on the principle of cash, value of assets under management at the end of 2012 reached over 740 million Euros. This increase was 152 million Euros compared with the end of 2011 when in the accounts were 588 million Euros. This also is the largest growth of assets under management since the establishment of Pension Savings Fund. This increase was influenced from the contributions paid in 2012 in the value of 113 million Euros, return on investments in the value of 54 million Euros and 15 million Euros were outflows for pension payments and refunds, as a well as management fee of KPST.

It is worth noting that during 2012 for the first time in the Government of Kosovo securities have been invested around 14 million Euros.

3. Key facts

Table 2 shows the key facts summarized for the last two years. Final data’s for 2012 will be presented in the Annual Report 2012, following the audit of financial statements by professional external auditor, no later than by the end of May.

Table 2: Key summarized facts

* Final data for 2012 will be published following the audit of financial statements.