NON-STATE PENSION FUNDS IN THE SYSTEM OF NON-BANKING INSTITUTIONAL INVESTMENT

Abstract

The article examines the role and significance of the activity of non-state pension funds as institutional investors. It is noted that the amount of accumulated assets of these institutions remains extremely small, and the ratio of their value to the country's GDP is also meager. It was emphasized that non-state pension funds in its activities perform two extremely important functions, which are related to the provision of financial protection of its participants and the supply of long-term investment resources for the development of the economy. During the studied five-year period, a positive trend was revealed regarding the growth of the size of investment assets, pension contributions, investment income and profit, and the increase in the number of depositors and participants in the activities of the non-state pension funds. However, such dynamic processes did not increase the significance of the studied institutes in the system of non-banking institutional investment. Leading positions in this system continue to be occupied by venture investment funds whose asset management companies implement business-oriented and risky investment strategies. The peculiarities of the implementation of investment strategies of the non-state pension funds are analyzed. Emphasis has been placed on simplifying such strategies and making them more secure in recent years. A conclusion was made about the insufficient influence of pension funds on the development of the domestic stock market and the concentration of their financial investments in government bonds and bank deposits. The need for accelerated development of domestic non-state pension funds by finding effective forms and tools for stimulating their activity is indicated. A prominent place among them can be occupied by tax instruments, measures to improve the financial literacy of citizens, promotion of the activities of successfully functioning funds. A conclusion was made about the need to expand the composition of investment-attractive financial instruments for the NPF due to the issue of long-term pension bonds, simplify the procedures for purchasing effective securities on foreign markets, and strengthen the state's guarantees of protection of pension assets placed on bank deposits.