OREANDA-NEWS. RusRating has assigned a reliability rating to NPF Evropeiski Pensionny Fond (AO). The rating is "AA" on the national scale and "BBB" on the international scale, in both cases with a positive outlook.

The rating is based on the support of the Fund’s ultimate beneficiary owner, an effective business model, a highly-diversified client base, strong returns on invested pension savings and low current pension pay-outs.

Constraining factors include the moderately-risky structure of the investment portfolio and low diversification by management company.

The positive outlook reflects expected growth in the client base and the resulting increased business, as well as prospects for consolidating BIN group pension assets with the Fund.

About the Fund

NPF Evropeiski Pensionny Fond (AO) [trs. European Pension Fund Non-State Pension Fund (JSC)] is a private-sector non-state pension fund controlled by the BIN group. Set up in 1994, it is licensed to handle both mandatory state pensions and private pension coverage. The Fund specialises in working with private individuals under mandatory programmes. In January 2015 the Deposit Insurance Agency added NPF Evropeiski to the list of NPF’s admitted to the pension guarantee system.

The Fund’s ultimate beneficiaries are Mikail Osmanovich Shishkhanov and Mikhail Safarbekovich Gutseriev, the principal owners of B&N Bank, who also control major real estate assets. Thanks to its effective business model and the support of its owners, NPF Evropeiski has been one of Russia’s fastest growing pension funds by number of clients, with roughly one million accounts as of mid-2015. According to the Central Bank, it ranks 20th in the country by number of clients under mandatory pension programmes, 14th by pension savings and fifth by returns on invested pension savings. Even stronger growth is expected by year’s end, which would push the Fund further up the rankings.

The Fund’s own return on capital is comfortable. The return on invested pension savings is above-average for the market, reflecting the structure of its portfolio, which involves moderate credit risks and provides comfortable liquidity. Exposure to market risks is modest and currency risk is absent. The client base is stable and highly diversified. Actuarial balance is close to satisfied. Liquidity is sufficient.