The return on assets of Armenia`s pension funds increased on average  by 6-7% in 2018

ArmInfo. The total assets of the pension funds of Armenia by November 1, 2018 reached 147.2 billion drams, and their profitability in January-October increased by an  average of 6-7 percentage points.

According to the data provided to  ArmInfo by pension fund managers, as of the reporting date, the total  managed assets of Amundi-ACBA Asset Management CJSC amounted to 75  billion drams, and C-QUADRAT Ampega Asset Management Armenia LLC-  72.2 billion drams.  

The structure of the assets of the pension fund  managed by Amundi-ACBA Asset Management is as follows: conservative -  72.2 billion drams (97% of the total), balanced - 1.7 billion drams  (2%), Fixed income fund  - 1 billion drams (1%) . The assets of  C-QUADRAT Ampega Asset Management Armenia are distributed among the  managed funds as follows: conservative - 71.01 billion drams (98.4%  of the total), balanced - 719.2 million drams (1%), Fixed income fund  -  469.8 million drams (0 , 6%).  

The breakdown by currency is dominated  by dram investments: Amundi-ACBA Aset Management - 51.750 billion drams, and C-QUADRAT Ampega Asset Management Armenia LLC - 53.144  billion drams. Then dollar investments follow: Amundi-ACBA Asset Management has an equivalent of 17.250 billion drams, and C-QUADRAT  Ampega Asset Management Armenia has 13.332 billion drams. And the volume of investments in euro is equally low for both managers: Amundi-ACBA Asset Management is equivalent to 6 billion drams, while C-QUADRAT Ampega Asset Management Armenia has 5.4 billion drams.

Amundi-ACBA Asset Management dominated the Armenian financial market with investments in government bonds of 24.750 billion drams, while C-QUADRAT Ampega Asset Management Armenia LLC made most investments in bank deposits -28.406 billion drams. C-QUADRAT Ampega Asset Management Armenia LLC investments in corporate bonds amounted to 8.4 bln drams, and Amundi- ACBA Asset Management - 4.5 bln drams.

Amundi-ACBA Asset Management invested 7.5 billion drams in foreign bond funds, and C-QUADRAT Ampega Asset Management Armenia LLC  invested 3.3 billion drams. Investments in equity funds (stock indices) turned out to be almost similar: Amundi-ACBA Asset Management - 12 billion drams, "C-QUADRAT Ampega Asset Management  Armenia LLC - 11.6 billion drams.

The return on assets by type of funds is higher for balanced fund manages by Amundi-ACBA Asset Management  ones - 53.3% (since the start up to Oct 31, 2018), and for C-QUADRAT  Ampega Asset Management Armenia LLC by Fixed income - 58.69%. For other funds, the return on investment is as follows: Amundi-ACBA  Asset Management: conservative - 49.3% and Fixed income - 47.9%; C-QUADRAT Ampega Asset Management Armenia LLC:  conservative - 46.92% and balanced - 46.73%.

In Armenia, within the framework of the mandatory pension savings system, there are two pension funds - Amundi-ACBA Asset Management  CJSC (since November 19, 2013) and C-QUADRAT  Ampega Asset Management Armenia LLC (from November 29, 2013). The shareholders of Amundi-ACBA  Aset Management CJSC are the French company - 51% and ACBA-Credit  Agricole Bank - 49%. Austrian investment company C-QUADRAT Investment AG acts as shareholders of C-QUADRAT Ampega Asset Management Armenia LLC - 74.9% and German company Talanx Asset Management GmbH - 25.1%. Pension account operators are HayPost, ARARATBANK, Ardshinbank,  Armbusinessbank, HSBC Bank Armenia,  VTB Bank (Armenia) and  Converse Bank.

To recall, the multi-level accumulative pension system mandatory for  people born after January 1, 1974 (for citizens born before January  1, 1974, a distribution pension system is in effect) was introduced  in Armenia from January 1, 2014.