The Agency for Regulation and Development of the Financial Market of the Republic of Kazakhstan has proposed gradually expanding private management of pension assets under the draft Capital Market Development Program for 2026-2030. The reform would broaden the institutional investor base and diversify investment strategies while preserving the foundations of the pension system, including centralized contribution collection and the National Bank’s role in investment policy and performance assessment. Licensed domestic investment portfolio managers would compete for mandates covering designated asset classes. The first phase would create a subportfolio of government securities, with corporate bond and equity mandates potentially added later. The National Bank currently manages 99.7% of pension assets, while private managers oversee KZT 88.6 billion, or about 0.3%, despite contributors being allowed to transfer up to 100% of their savings to a private manager since 2026. Assets would be segregated from managers’ own funds and other client assets, subject to independent custody, and protected if a manager becomes insolvent. Managers would face enhanced capital, risk management, internal control and disclosure requirements, as well as restrictions on related-party investments and liability for losses caused by misconduct or mandate breaches. The proposal also envisages age-based investment strategies, with higher-risk assets for younger contributors and progressively more conservative portfolios as retirement approaches, implemented in stages with continuing risk and performance assessments.

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