Over €100m increase of assets during H1 2019 from investments

Pristina, 12 July 2019 – The Kosovo Pension Savings Trust has concluded the first half-year of 2019 with a gross return of over 100 million Euros from investments.

Markets during this six-month period have stood at positive quotas, although there were some strong volatility in the financial markets, especially in May. Economic and corporate business indicators were encouraging for investors. Meanwhile, there was also a softening in the market war between the great powers. However, the risk of deteriorating political tensions continues to be actual, which will require increased vigilance to maintain the level of value raised in the second half of the year – which will be challenging due to volatility in financial markets.

Under these conditions, the Governing Board is actively following the moves and, depending on expectations, will make tactical allocation of invested funds. The Board has also added a new investment fund (BlackRock – iShares Edge S & P 500 Minimum Volatility Euro Hedged) to better manage fluctuations in financial markets.

Meanwhile, the Board continues to be committed to increasing investments in Kosovo, within the established legal possibilities. Investing more funds in bank deposits in Kosovo is underway, while participation in all Kosovo government securities auctions continues.

With these highly positive moves in investments, and with new incoming contributions, funds under management were increased by around 180 million euros this reporting period, reaching to €1,863 million. About 24% of this assets were allocated in Kosovo, while the rest (76%) were invested in the global financial markets.

We recall that since its establishment until 30 June 2019, KPST has a gross return on investments of about 450 million euros.