Announcement about the KPST measures and investments

Pristina, 7 April 2020 – In order to properly inform and not create unreasonable panic as a result of unbalanced reports and statements, the Kosovo Pension Savings Trust wants to notify the contributors, the media and the general public of the current state of assets under the management of the institution.

First, it should be noted that based on the current legislation, KPST operates, in the long term, and fluctuations in financial markets should not be accompanied by panic due to short-term declines. In the short term, the KPST has managed to create a protective measure for all contributors who retire during 2020. No age contributor will be affected by the decline in investment during this year. This measure, by keeping the assets of this age group in a separate investment portfolio, makes them immune from the decline in financial markets.

While the assets of other contributors who have been affected (or will be affected) by this pandemic situation will have time to recover during the remaining period of 2020 and (eventually) during 2021. We expect that with the end of the health crisis, along with the positive effect of the stimulus and protection measures taken by the governments, the financial markets will be recovered – and thus the KPST investments will increase as well.

We want to remind contributors that despite the current situation, their balance of pension savings will continue to have a positive return on investment (with some possible exceptions). Currently, the KPST price unit has a return of 43.5% since the establishment and a positive return of about 6% for the last 5 years. So, the current decline of about -4.5% for 2020 has reduced the accumulated return but is not at a worrying level and we believe it is temporary.

Also, at the moment, the KPST has its investments more protected than ever before, with the lowest exposure to the highest risk financial instruments. About ¼ of all assets are invested in Kosovo, with the possibility of increasing this presence in the coming days. At the same time, only about 13% of the assets are invested in the stock market (where the risk is highest), which is also the lowest historical level in this instrument.

Despite the health emergency situation globally but also in Kosovo, all KPST information on return on investment, assets under management, asset managers, unit price, contributors, and all information on investments is published daily on the website, but also the access of over 142 thousand contributors to their eTrusti accounts is available every working day. There is no reason for fear, let alone panic, and there is no evidence that the KPST lacks transparency. It is quite the opposite.

At the same time, we want to inform the contributors that we continue to provide direct services, under the restrictions recommended by health institutions, as well as services through the Internet (also through the social network Facebook) for all contributors.

We reiterate: KPST believes that this situation will be overcome and that the world will be able to find energy and ideas to return to normalcy and prosperity. KPST is doing its best and is in constant coordination with other institutions in the country.

We ask the media to contact the KPST officials when reporting on the KPST in order to provide fair and accurate information to the public.