VEB delivers over 17% yield on Russian pension savings in Q1, outpacing inflation

MOSCOW. April 14 (Interfax) - VEB.RF, which serves as the state management company (SMC) for managing citizens' pension savings, earned over 100 billion rubles for future pensioners in Q1 2025, according to the state corporation's data.

The income from VEB.RF's placement of citizens' pension savings in Q1 2025 exceeded 100 billion rubles for the expanded portfolio, while the income from the government securities portfolio surpassed 2 billion rubles, with annualized yields reaching 17.22% and 17.72%, respectively.

According to Rosstat, annual inflation accelerated to 10.34% in March 2025, from 10.06% at the end of February and 9.92% at the end of January. Analysts had expected 10.25% in March.

The quarterly results in terms of income and yield from savings placement are record-breaking for the past 20 years, Alexander Popov, the head of VEB's pension savings management division, was quoted as saying by the state corporation's press service.

"By the end of Q1, the savings portfolios showed strong growth, driven by coupon income from bonds and interest income from cash placements. The yield on citizens' savings significantly exceeds inflation - both for Q1 and over long-term horizons of 10 years or more," Popov said.

In Q1 2025, VEB continued to increase investments in both Russian government loan bonds (OFZ) and corporate bonds, which provide a yield premium over government securities, Popov said. Key investment sectors include urban economic development, transport and energy infrastructure, and digital solutions and technologies.

To date, VEB.RF manages funds for approximately 37 million future pensioners, including so-called silent ones who have not chosen any portfolio of the state management company or private management companies and have not transferred their savings to non-state pension funds (NPFs). VEB.RF also manages funds from clients of NPFs and management companies whose licenses were previously revoked or surrendered. The total value of assets under VEB's SMC management exceeded 2.5 trillion rubles at the end of Q1.