Thursday, June 16, RAEX rating Agency lowered the rating of reliability of the pension Fund “the Future” by one notch from A+ (“Very high level of reliability”) to A (“High level of reliability”). His decision RAEX explained the adverse revision of the credit ratings of the assets of the Fund. As a result, the Fund needs to sell 6.2% of the assets in the portfolio of pension accruals, said managing Director of corporate ratings RAEX Pavel Mitrofanov. According to the Bank, on March 31, 2016 assets of NPF “the Future” was 237 billion rubles., of which 230 billion rubles accounted for retirement savings. Thus, the Fund will have to sell the assets of 14.7 billion rubles.
Under current legislation, pension funds can invest for future retirees only in stocks and bonds included in top quotation list of Moscow exchange with ranking not lower BB under international scale (or A++ on a scale RAEX). The maximum proportion of such securities may not exceed 10% of the Fund’s assets.
Perhaps the Fund will have to establish reserves with the sale of certain assets, which could lead to a reduction in its capitalization, the report said RAEX. Nevertheless, “the Agency positively evaluates the ability of the beneficiaries of the financial support Fund in the framework of rebalancing the structure of its assets.”
In 2015, the Foundation has had to establish reserves of 5.2 billion rubles for impairment of securities of Russia, whose Central Bank in January, revoked the license. As previously mentioned , the O1 group acquired bonds of Vneshprombank on 7 billion roubles, including at the expense of pension savings. At the end of last year, according to IFRS NPF “the Future” recorded a loss of 3.7 billion rubles. According to the annual report, bonds of Vneshprombank bought another NPF, a division of the-O1, — Stalfond. By the end of 2015, it received a loss of 3.76 billion rubles the size of the reserves generated funds under the commitments of Russia, amounted to 2.1 billion RUB Both of the Fund up to 2015 showed a yield below the inflation rate of 5.6% per annum from the NPF “the Future” and 7.6% “‘fond”. In the first quarter of 2016 profitability of NPF “the Future” was negative — a minus of 6.8%.
The General Director NPF “the Future” Nikolay Sidorov said that he did not agree with the assessment of rating agencies. “We are fully confident that these papers, if necessary, will be implemented in the required time, the solvency of the Issuer we have no doubt,” he said. According to Sidorova, the paper is a small part of the portfolio, their implementation will not lead to the loss and violation of the interests of insured persons. On what the securities in question, Sidorov said. A source close to O1 Group, noted that the three corporate bonds.
Senior portfolio Manager UK “Kapital” Dmitry Postolenko believes that purchasers of the securities of NPF “Future” can be both banks and management companies, if we are talking about liquid bonds. “If it’s paper specific third tier, the limits on which are open at a very limited number of market participants, the buyer will be difficult to find. Investments in bonds of issuers of the first echelon and BFL now allow you to earn at a level above inflation, so investors are not ready unnecessarily increase risks,” he said.
NPF “the Future” is one of the largest private pension funds in Russia and is under control of O1 Group Boris mints. The Fund ranks second in the number of insured persons and third place on volume of pension savings. In March of NPF Future” (formerly “Welfare of OPS”) was incorporated NPF Stalfond. In addition, Boris mints in control of NPF “Telecom-Soyuz and NPF “URALSIB”. Thursday, July 16, O1 Group also announced the acquisition of NPF “Education”. With the latest purchase the amount of pension savings under management of funds included in the O1 Group, amounted to 242 billion rubles, and the number of insured persons — 4 million people.