NPF has significantly increased the demand for infrastructure bonds
Photo: RIA NOVOSTI/Vitaliy Belousov
Infrastructure projects become the most effective investment of pension savings. They allow you to obtain profitability at the level of 10-15%, with projected inflation at 5.5–6% in 2016. As told “Izvestia” market participants of pension savings, investments in infrastructure, including housing, utilities, steel investment trend of the year. However, while the market shortage of such securities.
NPFs (nonstate pension funds) will invest about 40% of its assets in corporate bonds, including infrastructure. Interest in the latter started to rise sharply in the middle of last year, said the first Vice-President of the National Association of pension funds (NAPF) Sergey Erlik.
— Funds members of the funds received from the PFR (Pension Fund of Russia) about 400 billion rubles, “frozen” pension savings of 230 billion rubles (76,9%) was invested in bonds of Russian issuers, including infrastructure, he said.
President of the Association of pension funds (ANPF) Sergey Belyakov explained the unexpected interest in these securities. According to him, the yield on infrastructure bonds exceeds most of the other tools and achieves a 15% per annum.
— Investment in infrastructure projects with proper quality preparation can bring good income to future retirees. However, such capital expenditure is exactly what today needs of the domestic economy and is consistent with the tasks to solve which called NPF. They contribute to the development of the economy and will in the future to raise the level of pensions, — said Sergey Belyakov.
According to the Central Bank, 96% of NPF (53 of 55), working with pension savings, provided for six months the yield above the inflation rate (plus 3.2 percent). The average for the first half of 2016 pension savings of Russians has grown by 9.96%.
— Highest yield among the NPF within the funds, received funds, working with infrastructure projects, stated at a recent roundtable in the Public chamber of the presidential adviser NAPF Valery Vinogradov.
Among the NPF is not yet appreciated the benefits of investment in infrastructure projects, but interest in such investments is constantly growing.
— We consider investments in infrastructure projects as one of the most interesting and promising. In particular, shares and bonds of Russian companies invested about 40% of the funds managed by the pension funds of the group SAFMAR, and we are considering the possibility to increase the volumes, constantly searching for new projects, — have informed “news” the representative of the group SAFMAR.
Sergey Erlich added that the three most active investors in infrastructure projects include NPF “Gazfond”, Vnesheconombank, NPF “Heritage”. Also there are projects in the portfolios of NPF “VTB the Pension Fund” and NPF “Promagrofond”.
NPF Soglasie has not yet come to the market for infrastructure projects due to inappropriate balance of risk to return, said a member of the Board of Directors of NPF “Consent” Andrey Neverov. However, he did not rule out future possible interest in securities “if the market will be the perfect opportunity.”
Among the popular NPF infrastructure projects — housing and communal services of Volgograd, the Northern bypass of Odintsovo, “Western high-speed diameter”, etc., told “Izvestia” a source in the pension market. In his opinion, in the near future possible investment in social infrastructure through public-private partnerships — kindergartens, schools and hospitals.
However, not all NPF have investments in infrastructure projects. For example, they do not have NPF of Sberbank, NPF “Empire” and NPF “URALSIB”. The representative of the NPF of Sberbank said that the Fund’s strategy involves buying bonds from major companies, but not of infrastructure projects. The head of Department of analytical researches JSC “UK URALSIB” Alexander Golovtsov said that the Fund could not afford a purely project investments because of the extremely long-term investment of 5-10 years.
— Unfortunately or fortunately — share zero. We only invest in securities. Those that were produced in relation to the project (it was something to do with road construction), were completely illiquid, he said.
According to Alexander Golovtsova, the main risks for such investment, long implementation period, changes in regulation and the excess of the cost estimates.
Representatives of the real sector of the economy believe that the pension money could help the development of industry and infrastructure.
— Pension funds put into the rigid framework, the space for maneuver is small. Meanwhile, subject to appropriate legislative approval NPF could become a source of investment for non-listed medium-sized industrial companies. For example, they could enter in the capital of enterprises, to provide bilateral interest loans and to participate in syndicated transactions with banks and other investors, — considers the head of Department of projects of the industry development Fund Paul Taratorin.
NPF forced to revise their investment strategies, due to the fact that the Central Bank gradually changes the rules for investment funds. So, we have consistently reduced the proportion of admissible investments in banks and deposits and in securities-related structures. Also, the Central Bank recently abolished the possibility of investments in mortgage certificates of participation, but were allowed to invest in venture projects.