The Central Bank of Russia released a draft ordinance for public discussion that would broaden non-governmental pension funds’ (NPFs) options for investing pension reserves by removing several instrument-specific limits and allowing a larger share of higher-risk assets, alongside tighter stress-testing requirements. The proposal would cancel common limits on investments in shares, convertible bonds, subordinated bonds and perpetual bonds, as well as in securities issued by Russian constituent territories and municipalities. It would also expand the list of shares NPFs may buy beyond the risk limit from 47 MOEX Russia Index constituents to exchange-traded liquid shares whose issuers have a credit rating, taking the list to around 60 companies. The share of assets with an additional level of risk would increase from 7% to 15% of pension reserves, with this category redefined to include all assets that are difficult to value. Separately, the draft would phase down the concentration limit for investments in one entity (or group of entities) from 10% to 5% by 2030. The draft ordinance is open for public discussion.
Central Bank of Russia 2025-06-17
Central Bank of Russia consults on lifting non-governmental pension funds’ pension reserve investment limits and raising higher-risk asset allowance to 15%
The Central Bank of Russia proposed a draft ordinance to expand non-governmental pension funds' investment options by removing specific limits and allowing a higher share of higher-risk assets, increasing from 7% to 15% of pension reserves. The proposal includes canceling limits on various bonds and securities and expanding the list of eligible shares. Additionally, it plans to reduce the concentration limit for investments in a single entity from 10% to 5% by 2030.