PENSION funds last year invested only two percent of their assets on prescribed paper due to insufficient investments that require prescribed assets status, the Insurance and
By law, pension funds must purchase prescribed papers. The money raised is normally used to support Government projects but there were few projects with such status,
According to the law, 10 percent is the prescribed assets ratio for pension funds.
Assets for pension funds grew to
This implies that as much as
Life companies are required to buy prescribed papers at asset ratios of five percent for short-term insurers and 7,5 percent for long-term insurers.
Life industry's total assets grew to about
Last year, some of the papers that had prescribed assets status include
"The (pension) industry's compliance level on statutory paper was 2 percent," said
The world over, pension funds are increasingly playing an important role in the national economies and if properly invested, they provide a mechanism for stimulating economic development.
In addition, pension funds across the globe are also increasingly looking at infrastructure investment with some investors actively pursuing opportunities in the sector.
The Russian government proposed to distribute at least
Implementation is yet to begin but it is clear what the Russian government expects of pension funds.
"These projects require long term funds through local funders, FDI and external lines of credit," said
"The country thus requires stable financing with long term profile to finance capital projects at fair cost."
Meanwhile, self-administered funds reported a 38 percent growth in contributions in 2013 to
The fund administrators received contributions amounting to
Total costs were 1,11 times bigger than total benefits paid.
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