Pension Assets in Georgia Reach ₾5.2 Billion, Reports Goga Melikidze

Goga Melikidze, Chief Investment Officer of the Pension Agency, has announced that the value of pension assets has reached 5.2 billion GEL. He provided this update during an interview with the "Business Partner" program.

As of June 30, 2024, the pension scheme boasts 1,529,000 participants. "The fund's growth dynamics are noteworthy. Initially, the fund increased by about 1 billion GEL annually four years ago, and now we see an annual rise in contributions of about 1.2 billion GEL. In terms of investment profits, the fund is growing by approximately 1.5 billion GEL per year," Melikidze explained.

In August of last year, the agency introduced an additional investment portfolio option, categorizing participants by age. "Those who did not select their portfolio were automatically enrolled in a conservative one. Looking at the total portfolio, which amounts to 5.2 billion GEL, 99% of it is in conservative portfolios, with about 50 million GEL in balanced-dynamic portfolios," he added.

Participants now have the flexibility to change their investment portfolios without restrictions, though Melikidze noted that there isn't a high frequency of participants switching portfolios daily.

He also highlighted the performance of the different portfolios: the conservative portfolio yielded an 11.4% investment profit over the last 11 months, while the balanced and dynamic portfolios generated returns of 13.4% and 15%, respectively.