Mandatory Pension funds
Contributions paid by or on behalf of pension fund participants are invested in pension funds. Pension funds are managed by independent professional asset managers until the proceeds are paid out to participants in the form of pension benefits once participants reach retirement age. Participants may choose their pension fund manager and the type of pension fund. Pension fund participants are the owners of the pension fund assets, not the fund manager. Three different types of funds are available. All funds are subject to guidelines and limitations of fund assets. As a rule, these funds invest in high-quality Armenian and foreign securities. Investments in foreign currency are limited to 40 % of fund’s assets. The main difference between the three different types of pension funds is the proportion of respective fund assets invested in equities, which offer higher yield but are also subject to a higher level of risk than fixed-income securities.
These three funds are managed by “C-QUADRAT Ampega Asset Management Armenia”, a joint venture of “C-QUADRAT” (Austria) and “Talanx Asset Management” (Germany).Download as PDF (181KB)
Mandatory pension fund objective of which is long-term growth in asset value by investing 100 % of its assets in bonds, money market instruments, deposits, investment funds investing in the above securities, as well as deposits and similar assets. The fund does not invest in equities or equity funds.
Mandatory pension fund objective of which is long-term growth in asset value by investing up to 25% of its assets in equities, equity funds and equity-equivalent instruments, while the remainder of which in bonds, money market instruments, deposits and other assets.
Mandatory pension fund objective of which is long-term growth in asset value by investing up to 50% of its assets in equities, equity funds and equity-equivalent instruments and the remainder in bonds, money market instruments, deposits and other assets.