On the enpf website.kz in the section "Indicators – Investment activity" there is a monthly detailed report on the investment of pension assets by the National Bank of the Republic of Kazakhstan (NBK) and investment portfolio managers (IPM), as well as investment activity reviews.
The total amount of pension assets under management as of October 1, 2022 exceeded KZT 14.1 trillion. At the same time, the pension assets of the UAPF held in trust by the NBK amounted to KZT 14,095.38 billion. Pension assets under the management of the UIP amounted to 9.06 billion tenge.
Investment portfolio of pension assets managed by the NBK
As of October 1, 2022, within the framework of the directions approved by the National Fund Management Council of the Republic of Kazakhstan, a significant share (about 46%) in the portfolio of the UAPF PA is occupied by the State Securities of the Ministry of Finance of the Republic of Kazakhstan, as the most reliable instruments on the stock market. Their current value of which is ila 6,477.39 billion tenge. In September 2022, the portfolio included state securities of the Ministry of Finance of the Republic of Kazakhstan in the amount of 195.1 billion tenge with a weighted average yield of 14.36% per annum. In general, the weighted average yield to maturity on government securities of the Ministry of Finance of the Republic of Kazakhstan denominated in tenge amounted to 11.6% per annum, in US dollars – 3.4% per annum.
Along with the bonds of the Ministry of Finance of the Republic of Kazakhstan, pension assets of the UAPF are also invested in securities of quasi–state companies (1,725.87 billion tenge – 12.24% of the portfolio), second–tier banks (bonds of STB - 929.12 billion tenge or 6.59% of the portfolio; deposits of STB - 197.09 billion tenge, 1.4%), international financial organizations (382.32 billion tenge, 2.71%) and other financial instruments.
In the foreign market, the investment of pension assets of the UAPF is carried out on an index basis. The strategic distribution of the foreign exchange portfolio, established by the Investment Declaration of the UAPF, provides for investment in such major foreign asset classes as global stocks, bonds of developed and emerging markets, corporate bonds of investment-grade issuers.
The investment portfolio in the context of currencies in which financial instruments purchased at the expense of pension assets are denominated is presented as follows:
investments in the national currency – 70.17%, in US dollars – 29.75%, in another currency – 0.08% of the portfolio of pension assets.
As a result of investment activity, as well as due to the volatility of foreign exchange rates and changes in the market value of financial instruments, the amount of accrued investment income since the beginning of 2022 amounted to 741.96 billion tenge. The yield for 9 months of 2022 amounted to 5.34%, for the last 12 months on pension assets secured by the National Bank of the Republic of Kazakhstan (from October 2021 to September 2022) amounted to 7.52%. The accumulated return on pension assets for 5 years was 55.8% with accumulated inflation of 53.7%.
The detailed structure of the investment portfolio of financial instruments managed by the NBK with the indication of issuers and an overview of investment activities are posted on the official website of the UAPF.
Recall that Kazakhstan has a model of the state guarantee of the safety of pension savings. In accordance with Article 5 of the Law of the Republic of Kazakhstan "On Pension Provision in the Republic of Kazakhstan", the State guarantees recipients the safety of mandatory pension contributions and mandatory occupational pension contributions to the UAPF in the amount of contributions actually made, taking into account the inflation rate at the time of receiving the right to pension payments.
Investment Portfolio Managers
The total amount of funds under the management of the UIP is 9.06 billion tenge.
Pension assets held in trust by JSC "Jusan Invest" amounted to KZT 4,045 billion. They were used to purchase: shares of Exchange Traded Funds (ETFs), they make up 29.74%, notes of the NBK (30.01% of the portfolio), state securities of the Ministry of Finance of the Republic of Kazakhstan (17.61%). 9.65% of the portfolio is in REPO, 12.98% is in cash on accounts. Note that 65.01% of the portfolio is represented in tenge, 34.99% in US dollars.
As a result of investment activity, the profitability of pension assets under the management of JSC "Jusan Invest" since the beginning of the year amounted to 0.64%, for 12 months 4.83%.
The detailed structure of the investment portfolio of financial instruments managed by JSC "Jusan Invest" with the indication of issuers is presented on the UAPF website.
Pension assets held in trust by Halyk Global Markets JSC amounted to KZT 2.58 billion as of October 1, 2022. In the portfolio structure, reverse repo (no more than 90 calendar days) is 50.11%, bonds of quasi-governmental organizations of the Republic of Kazakhstan 13.29%, equity instruments of foreign issuers (ETF units) 12.95%, cash on accounts 7.51%, bonds of second-tier banks of the Republic of Kazakhstan 5.73%, bonds of MFIs 4.75%, corporate bonds of organizations of the Republic of Kazakhstan 4.49%, other assets. Investments in national currency accounted for 79.13% of the portfolio, in US dollars - 20.87%. The profitability of pension assets under the management of JSC "Halyk Global Markets" from 01.01.2022 to 01.10.2022 amounted to 1.16%, for 12 months 4.5%.
The detailed structure of the investment portfolio of financial instruments managed by Halyk Global Markets JSC with the indication of issuers is presented on the UAPF website.
Pension assets held in trust by JSC "BCC Invest" amounted to 1.46 billion tenge as of October 1 of this year. They are distributed in government bonds of the Republic of Kazakhstan – 44.06%, shares (ETFs for indices) – 19.72%, bonds of quasi-governmental organizations of the Republic of Kazakhstan 9.84%, shares and depositary receipts of foreign issuers 8.23%, bonds of MFIs 5.89%, bonds of STB of the Republic of Kazakhstan 5.51%, corporate bonds of issuers-residents of the Republic of Kazakhstan 5.23%, cash on investment accounts 1.42%, other assets (accounts receivable, overdue debts, provisions) 0.1%. 71.65% of the portfolio was invested in instruments in the national currency, 28.35% in US dollars.
As a result of investment activity, the profitability of pension assets under the management of JSC "BCC Invest" since the beginning of this year has been (-0.38%), for 12 months - 3.31%.
The detailed structure of the investment portfolio of financial instruments managed by JSC "BCC Invest" with the indication of issuers is presented on the UAPF website.
As of October 1, 2022, the pension assets of the UAPF held in trust by Centras Securities JSC amounted to 0.97 billion tenge. They are invested in the State Securities of the Ministry of Finance of the Republic of Kazakhstan 54.43%, REPO – 14.04%, cash on investment accounts 12.66%, bonds of quasi–governmental organizations - 8.88%, shares and depositary receipts of issuers of the Republic of Kazakhstan - 8.29%, equity instruments of foreign issuers (ETF units) 1.7%. 80.25% of the portfolio was invested in instruments in the national currency, 19.75% in US dollars.
As a result of investment activity, the profitability of pension assets under the management of Centras Securities JSC since the beginning of 2022 amounted to 2.06%, for 12 months – 4.74%.
The detailed structure of the investment portfolio of financial instruments managed by Centras Securities JSC with the indication of issuers is presented on the UAPF website.
Recall that after receiving pension assets from the UAPF, the UIP invests them in authorized financial instruments specified in the Rules for the Implementation of Investment Portfolio Management Activities approved by Resolution No. 10 of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014, and provided for in the Investment Declaration of the UIP.
When transferring pension savings to the management of the UIP, the guarantee of the state is replaced by the guarantee of the management company to ensure a minimum level of profitability of pension assets. The minimum level of profitability is calculated based on the weighted average yield of pension assets transferred to the management of the UIP operating in the market.