+227m return on investment for 2021

Prishtina, 11 January 2022 – Kosovo Pension Savings Trust Fund (KPST) concluded the year 2021 with a very satisfactory result from investments, with a gross return amounting to +227 million euros (2020: + 72 million euros). This figure, in nominal terms is the highest since the establishment of the institution. While the unit price increased this year by 10.65% compared to the increase of +3.03% for year 2020.

In total, pension assets increased by 365 million euros this year, reaching a total of 2.35 billion euros. At the end of 2021, about 77% of assets under management were invested in international financial markets, while the rest in Kosovo – in accordance with pension law. Investments in international financial markets continue to contribute about 95% of the investment performance.

As required by the principles set out in the Law on Pension Funds and based on the investment strategy of the KPST, the Governing Board assisted by the management and professional staff during 2021, has taken over 40 decisions for various allocations of pension funds. Considering that 2021 was a year affected by the pandemic, volatility in financial markets and various macroeconomic developments, the KPST investment strategy had to be adapted on regular basis including engagement of new funds to maintain liquidity, security, and diversification of the portfolio.

Expectations are that upcoming year 2022 will have high volatility due to the pandemic, supply chain disruption, inflation, rising interest rates by central banks and other geostrategic factors. As a result, the Governing Board remains committed to acting as needed under conditions and eventual movements of the financial markets.

Gross return on investment data in the last three years

In the field of operations, despite a year affected by the pandemic, the institution has continued to provide all services without closing the office.

During 2021 about 68 million euros were paid for 5,400 pension beneficiaries, while around 321 million euros were paid for 64 thousand pension beneficiaries since the inception.

In addition to day-to-day tasks, both in-office and remotely, out internal staff was engaged in building the IT platform for managing contributor accounts. This platform will give the institution many advantages in the long run: from the ownership of the source code, easier and more flexible management to cost reduction.

Also, during 2021, the Assembly of Kosovo unanimously approved the annual reports and management fees as proposed by the KPST.

In summary, the Governing Board is convinced that we left behind a very important year, in the field of investments as well in operations, and many challenges we faced.

Below are presented some of the most important indicators for 2021 compared to 2020.