+247.2m euros gross return for 2024
The Kosovo Pension Savings Trust (KPST) closed the year 2024 with a gross return of +243.7 million euros from investments. Adding the return surplus and other revenues (amounting to 3.5 million euros), the gross return for 2024 reaches 247.2 million euros. In nominal terms, this is a record figure for return from investments, but it was also due to higher assets under management. This was the 20th year, out of a total of 23 years of operation, that the institution achieved a positive annual return from investments. In total, the accumulated gross return since its establishment until the end of 2024 amounted to 997.2 million euros – very close to the symbolic figure of 1 billion euros.
The collection of new contributions in 2024, valued at 315.8 million euros, reflects a solid increase, both in nominal value (+29.6 million euros) and percentage-wise, by 10.3% compared to the previous year.
New contributions, along with investment returns, unlike withdrawals from savings and management fees, have positively contributed to the net assets under management, which increased this year by a record figure of +480.0 million euros, reaching nearly 3.2 billion euros.
Table 1: Change of AUM
| Portfolio | 2024 | 2023 | Change |
| Standard | €2,652,013,991 | €2,570,540,691 | €81,473,300 |
| Intermediate | €376,412,633 | — | €376,412,633 |
| Conservative | €153,414,694 | €131,267,932 | €22,146,762 |
| Total | €3,181,841,318 | €2,701,808,623 | €480,032,695 |
As a reminder, starting from April 1, 2024, KPST has three investment portfolios:
- Standard Portfolio – for contributors up to the age of 57;
- Intermediate Portfolio – for contributors aged 58 to 62;
- Conservative Portfolio – for contributors aged 63 and above.
These portfolios consist of various financial instruments, depending on the investment return target, risk, and investment volatility, and always in relation to the contributors’ proximity to retirement age.
| Portfolio | 2024 | 2023 |
| Standard | €224,022,743 | €83,010,837 |
| Intermediate | €14,384,338 | — |
| Conservative | €5,283,189.91 | €4,652,708 |
| Total | €243,690,271 | €87,663,545 |
STANDARD PORTFOLIO
The investment performance for the Standard Portfolio in 2024 was +8.77% (2023: +3.05%). The goal of this portfolio is to exceed the consumer price index (i.e., inflation) in Kosovo over the long term (10 years). Currently, the unit price of this portfolio has increased by around 82% since its inception, while inflation in Kosovo has been about 71%. Thus, it has clearly outperformed inflation in the country.
The Board of Directors harmonized the goal and investment strategy for this portfolio during 2024, also reviewing the KPST’s Investment Principles Statement. The investments of this portfolio will now consist of instruments with above-average risk, but which provide participants in this age group with the opportunity to reap more growth during their contribution years.
INTERMEDIATE PORTFOLIO
For 2024, this portfolio achieved a 4.05% increase in the unit price within the first 9 months of activity. This portfolio started being implemented on April 1, 2024, and is dedicated to participants aged 58 to 62.
The goal of the Intermediate Portfolio is to serve as a transition portfolio from the Standard Portfolio to the Conservative one, focusing on the stability of savings so that volatility and return are more moderate. However, the Intermediate Portfolio will continue to show long-term progress above the level of investments in bank deposits or the money market.
CONSERVATIVE PORTFOLIO
Participants in the Conservative Portfolio saw a growth of +3.60% this year (2023: +3.47%). Since the investments in this portfolio are in government bonds of Kosovo, the money market, and bank deposits, they were not affected by fluctuations in the financial markets, resulting in positive growth throughout the year.
Since participants in this portfolio are aged 63 and above, its main goal is to protect them from market fluctuations, as they no longer have enough time to recover in the event of a market downturn. Nevertheless, the portfolio managed to provide a stable positive growth over the past three years leading up to retirement.
Table 3: Summary of key indicators for 2023 and 2024
| TREGUESI | 2024 | 2023 |
| Gross return for the year (including surplus) | +€247 million | +€88 million |
| Gross return since inception | +€997 million | +€750 million |
| Net AUM | €3,182 million | €2,702 million |
| Unit Price – Standard Portfolio * | €1.8233 | €1.6764 |
| Unit Price – Intermediate Portfolio * | €1.0405 | — |
| Unit Price – Conservative Portfolio * | €2.2065 | €2.1302 |
| Collected contributions for the year | €316 million | €286 million |
| Pension withdrawal for the year ** | €68 million | €66 million |
| Retired during the year ** | 7,905 | 7,703 |
| Total account in the end of year | 874,194 | 834,251 |
| Active accounts for the year | 452,366 | 442,383 |
| Assets in global markets | €2,581,686,781 | €2,163,419,668 |
| Assets in Kosovo TB | €437,123,045 | €447,135,504 |
| Assets in banks operating in Kosovo | €164,228,724 | €92,533,913 |
| Investment fee | 0.310% | 0.32% |
| Operation fee | 0.048% | 0.05% |
*
– The Standard Portfolio began on August 1, 2002, with an initial unit price of €1.00.
– The Conservative Portfolio started on February 16, 2022, with an initial unit price of €2.00.
– The Intermediate Portfolio started on April 1, 2024, with an initial unit price of €1.00.
** Only principal pension payments for the year are included (both in number and value), not the residual payments.