KB First Pension Company AD Skopje invests the assets of the members of the Mandatory Fund it manages in accordance with strict rules and principles, under the continuous supervision of the Agency for Supervision of Fully Funded Pension Insurance, while the Custodian Bank keeps the Pension Fund’s assets separate from the Company’s assets.
Pension Fund assets are invested in order to ensure the safety of assets, diversification of investment risks and to maintain adequate liquidity levels. The Company shall focus its efforts on achieving a long-term (about 30 years’) nominal rate of return of at least 2 percentage points above the inflation rate (CPI) for the same period, i.e. achieving a real rate of return of at least 2%.
The process of asset allocation and risk budgeting takes into account the long-term nature of liabilities and the age structure of Fund members.
The management of Fund’s assets shall be done through a balanced portfolio consisting of: investments in both variable yield instruments and fixed-income instruments.
The purpose of investment in shares is to maximize the long-term real growth of assets, while investments in fixed-income instruments are expected to generate stable income and ensure portfolio protection.
Investments abroad shall be made in investment funds, mainly in index funds. By investing in the largest and most diversified international index funds, passive exposure to foreign capital markets is achieved, as well as investment costs control. The MSCI ACWI Index shall be taken as a benchmark for the regional portfolio structure of foreign shares.