The rules of the account: why the government and the Central Bank of different information about losses of NPF

In 2015, the nationals lost in the non-state pension funds more than 200 billion rubles, said Deputy Prime Minister Olga Golodets, speaking at the Russian business Week on Wednesday, March 23. In her opinion, it was the fault of the NPF, which is inefficient investing. Golodets also urged to take measures to protect the interests of citizens.

Later the press-Secretary of Vice-Premier Alexei Levchenko corrected statement of Olga Golodets, saying that he had in mind not 2015 and 2014, when the average profitability from investing pension savings amounted to minus 7.4%.

Later, the Central Bank said that in 2014, the NPF has earned for its clients the return from minus 5.2 to 42.2 per cent per annum, with an average of 5.5 per cent, in the money is RUB 60 billion And although no major NPF, neither private management nor the VEB was unable to avoid inflation, which was 11.4%, in view of the Central Bank the results of funds do not look so depressing.

Why are these Vice-Premier and the Bank of Russia differ? Golodets, according to Levchenko, based on data the Organization for economic cooperation and development (OECD), where experts have analysed data on us dollar the profitability of investing pension savings in 57 countries. According to the organization, in 2014, Russia remained the leader on losses in the pension system. In most countries, savings have increased: the average yield of the pension funds amounted to 6.8% in dollars, and in Russia — a minus of 7.4%.

“This financial result is associated with the devaluation of the ruble, which began in November 2014. Before that many governors had been in principle a good yield — up to 10% per annum”, — said General Director of “Capital asset Management” Andrey Gritsenko. The Manager recalled that in December, when the dollar reached 80 rubles, and the Euro reached 100 rubles, all ruble-denominated assets rapidly depreciated. “To do anything in this situation, the Manager of the pension money, which under the legislation is limited ruble-denominated instruments, it was impossible. This force majeure”, — said the Manager.

The Bank of Russia uses the data in ruble terms.

“In 2014, we summed up all the fallen ruble. But I don’t understand why the financial results of the funds operating in Russia and having to future retirees liabilities in rubles, it is necessary to estimate in dollar terms,” says the head of the largest NPF. According to him, pension funds, like all financial market participants, subject to the same currency risks. “Let us then evaluate the results of the banks in dollars,” he says.

Andriy Hrytsenko agrees that, for future retirees, the contributions for which employers pay in rubles and receive a pension which will also be in Russian currency, the yield in dollar terms are not so important. “From this point of view we can say that all the depreciated ruble deposits in banks. But for investment this question is incorrect”, — he said.

“It is absolutely incorrect to use the dollar for an evaluation of the funds that invest in the domestic market,” agrees the adviser to the head of the National Association of pension funds Valery Vinogradov. According to him, all of the assets of pension funds — in rubles. “It is incorrect and illiterate interpretation of the investment results,” he says.