Over €100m gross return on investments
Gross investment return (nominal value) for 2017 is expected to be at record levels since the establishment of the institution. Until 14 December 2017 gross investment return for the year (1 January 2017 to 14 December 2017) amounted to about 102 million Euros. While in percentage, this performance was reflected in an increase in share price for 6.42%. This result from investments of the Kosovo Pension Savings Trust (KPST) is considered by the Governing Board as highly satisfactory.
At the same time, we announce that the total gross return since the establishment of KPST up-to-date amounted to 407 million Euros.
The main role in this KPST investment performance was from investments in the financial market outside Kosovo, contributing overwhelmingly to the total return on investment.
It should not be overlooked that the KPST’s investment growth base lies in an overall development of global financial markets, where about 90% of KPST’s assets have been invested. This year, up to this reporting date, has recorded stability and sustainable global economic growth, which was because of both from improving economic indicators and monetary facilities in key economic centers. These were the prerequisites for investor optimism, where at the same time the KPST had an investment strategy managing to capture this positive development in the markets.
Photo from the press conference
Assets under management
Even this year, the KPST had a record growth of assets under management. Not including December, funds under management have increased for about 217 million Euros, compared to the increase of 189 million Euros marked last year. In addition to return on investments, record in collection of new contributions contributed to growth of assets under management. Up to this reporting date there were 150 million new contributions, not including December. Thus, until 14 December 2017 the assets under management amounted to 1 billion and 634 million Euros.
For this period, KPST had an asset outflow for: pension disbursement (26 million Euros), management fees (7 million Euros), and returns (507 thousand Euros).
Number of contributors
The number of contributors with accounts at KPST has increased considerably for this period, with 47,607 new contributors entering the scheme, making the number of accountholders at KPST reach 589,530.
Until this reporting date, there was a significant increase in the number of active contributors, totaling to 36,848 more accounts, thus totaling to 349,529 active accounts. A factor that has affected this growth has been the elections in the country and the engagement of temporary staff by the parties involved in the process.
Retirees
The number of pension beneficiaries for this period was 5,022 with the corresponding amount of 26 million Euros, compared to 4,447 beneficiaries and the amount of 19 million Euros that was for 2016. From the establishment until this date from KPST, 38,631 persons have benefited pension with a total amount of 117 million Euros.
Investments in Kosovo
The amount of investments in Kosovo increased from around 99 million Euros at the end of 2016 to about 142 million Euros by December 14, 2017. The increase of investments in Kosovo came due to (mainly) the increase of assets deposited in domestic banks. The Governing Board has consistently expressed the will to invest more within the country, within law permitting opportunities.
Services to contributors
Up to this reporting date, a total of 141,212 services were provided to contributors in comparison to 81,514 services delivered last year, or an increase of 73%. Also, the number of contributors registered in the online service (eTrusti) increased from 62,471 to 79,154 – an increase of 27%.
Summary of the most important facts for the two comparative periods:
| Facts | On December 31, 2016 | On December 14, 2017* |
| I | ||
| Gross return on investments during the period | €64.6 million | €101.2 million |
| Net assets under management | €1,417,970,874 | €1,634,873,882 |
| Unit price | €1.3756 | €1.4639 |
| II | ||
| Contributions collected during the period | €151.5 million | €150.0 million |
| Pensions withdrawn during the period | €19.2 million | €26.4 million |
| Retirees during the period | 4,447 | 5,022 |
| III | ||
| Contributors accounts | 541,923 | 589,530 |
| Active accounts | 312,681 | 349,529 |
| IV | ||
| Pensions disbursed since inception (of the KPST | €90.6 million | €117.0 million |
| Pension beneficiaries since inception (of the KPST) | 33,609 | 38,631 |
| V | ||
| Accounts in eTrusti | 62,471 | 79,154 |
| Services provided | 81,514 | 141,212 |
*Data is only valid until this date. As of December 31, 2017 data are expected to change.