Antonina Levashenko, Head of the International Best Practices Analysis Department at the Gaidar Institute, commented for Izvestia on the changes announced by the Bank of Russia in the rules for investing pension reserves of
"Active investment position of funds is a positive factor for the country’s economy, and for generations of future pensioners, among others. For example, the largest investor in the world with 1.5% of the world’s assets is precisely the Norwegian Pension Fund. To support investment activity, it is necessary to reduce the current limits on investment of pension reserves, i.e. to make assets of more companies more accessible for NPFs. For example, the decree proposes to abolish the requirements for a certain level of credit rating in respect of both Russian and foreign issuers," Antonina Levashenko noted.
"The reduction of requirements should not enhance risks for pension reserves, so the reduction of investment thresholds is accompanied by tougher risk management requirements. For example, the concentration limit is tightened (i.e. the size of the share of assets that can be invested in one company or a group of affiliated companies is reduced from 10 to 5%), also the limit in investment units of funds managed by one company is introduced — no more than 10% of the value of pension reserves", — the expert emphasized.
Antonina Levashenko also noted that the Central Bank continues to encourage funds to invest in shares of Russian companies. Thus, the Bank of Russia in March last year introduced a number of simplifications (increasing the aggregate number of shares that can be acquired by NPFs from 5 to 10%, etc.)
"Participation of NPFs in the investment activities of the country is undoubtedly a factor of economic development of the economy and, moreover, the nature of participation can set the direction of economic development. For example, the OECD annually monitors the participation of large and public pension funds in the stock market, including highlighting investments in