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ANNOUNCEMENT |
UAPF published a detailed report on pension assets investment
Investment portfolios of pension assets managed by the NBRK and IPM as of September 1, 2022
Investment activity on management of pension assets is transparent. On the website enpf.kz in the section “Indicators – Investment activity”, detailed information on the investment of pension assets by the National Bank of the Republic of Kazakhstan (NB RK) and investment portfolio managers (IPM), as well as reviews of investment activity, is monthly posted. The information is currently updated as of September 1, 2022.
It follows from the submitted reports: the total amount of pension assets under management as of September 1, 2022 amounted to about KZT14.0 trillion. At the same time, UAPF pension assets held in trust by the NB RK amounted to KZT13,965.12 bln. Pension assets under IPM management amounted to KZT9.13 bln.
Investment portfolio of pension assets managed by NB RK
As of September 1, 2022, within the framework of the directions approved by the Management Council of the National Fund of the Republic of Kazakhstan, the main investments of NB RK (as a trustee) in financial instruments are as follows:
˗ the main share in the UAPF PA portfolio is occupied by government securities of the Ministry of Finance of the Republic of Kazakhstan, the current value of which amounted to KZT6,235.81 bln. Their share in the portfolio was 44.65%. As of September 1, 2022, the weighted average yield to maturity on government securities of the Ministry of Finance of the Republic of Kazakhstan, denominated in tenge, was 11.3% per annum, in US dollars - 3.4% per annum.
˗ bonds of quasi-public organizations of the Republic of Kazakhstan with a current value of KZT1,714.32 bln (the share in the portfolio was 12.28%). The weighted average yield to maturity on bonds of quasi-public organizations of the Republic of Kazakhstan, denominated in tenge, amounted to 10.9% per annum, in US dollars - 5.5% per annum.
- bonds of second-tier banks of the Republic of Kazakhstan for the amount of KZT924.19 bln (6.62%). As of the reporting date, the weighted average yield to maturity on bonds of second-tier banks of the Republic of Kazakhstan amounted to 10.5% per annum.
- deposits in foreign banks as of the reporting date amounted to KZT704.12 bln. Their share in the portfolio was 5.04%. In the period under review, in order to maintain the return on the foreign exchange portfolio, deposits were placed in foreign banks denominated in US dollars for a total of 500.89 billion tenge with an average weighted yield of 2.67% per annum and a maturity of 1.8 months to 2 months.
- bonds of international financial organizations amounted to KZT378.85 bln. Their share in the portfolio amounted to 2.71%. The weighted average yield to maturity on bonds of international financial organizations amounted to 9.47% per annum.
In addition, the structure of the investment portfolio includes shares and depository receipts of issuers of the Republic of Kazakhstan KZT276.25 bln (share in the portfolio 1.98%), REPO 250.09 (1.79%), deposits in second-tier banks of the Republic of Kazakhstan KZT201.23 bln ( 1.44%), government securities of foreign states 140.80 (1.01%), NB RK deposits KZT31.20 bln (0.22%), corporate bonds of RK issuers - KZT 15.04 bln (0.11%), PPN - KZT11.49 bln (0.08%), corporate bonds of foreign issuers - KZT6.36 bln (0.05%), cash on investment accounts - KZT5.30 bln (0.04%) and other assets KZT21.42 bln (0.15%). It should be noted that KZT3,050.76 bln (share in the portfolio 21.85%) is in the index asset management, including GS of developed countries, GS of developing countries and assets under external management.
The investment portfolio broken down by currencies into which financial instruments purchased with pension assets are denominated is presented as follows:
investments in the national currency - 69.34%, in US dollars - 30.59%, in other currencies - 0.07% of the portfolio of pension assets.
As a result of investment activities, 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 KZT718.05 bln.
Against the background of the aggravation of the geopolitical situation, increased volatility in global financial markets, accelerating inflation, as well as rising yields on bonds of developed and developing countries, the return on UAPF pension assets distributed to the accounts of contributors (beneficiaries) since the beginning of 2022 amounted to 5.18%.
At the same time, as of September 1, 2022, the return on pension assets for the last 12 months (from September 2021 to August 2022) for UAPF contributors (beneficiaries) amounted to 8.58%. The cumulative return for the period from April 2014, when the consolidation of pension assets was completed, to August 2022 amounted to 113.16%. For 8 years from 2014 to 2021, in annual terms, the return on pension assets of the UAPF is 9.68% per annum.
It is worth emphasizing that pension savings are long-term investments and it is advisable to analyze the amount of investment income for a period of at least 1 (one) year. Short-term data (weekly, monthly, etc.) are not indicative, because subject to constant changes in market conditions.
A detailed structure of the investment portfolio of financial instruments managed by NB RK with indication of issuers and an overview of investment activities are posted on the official website of the UAPF.
Recall that in Kazakhstan there is 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 compulsory pension contributions and compulsory occupational pension contributions to the UAPF in the amount of actually made contributions, taking into account the inflation rate at the time of obtaining the right to pension benefits.
Investment Portfolio Managers
The total amount of funds managed by IPM is KZT9.13 bln.
Pension assets held in trust by Jusan Invest JSC amounted to 4.09 KZT bln. They were used to purchase: shares of Exchange Traded Funds (ETF) they account for 30.95%, NB RK notes (22.11% of the portfolio), government securities of the Ministry of Finance of the Republic of Kazakhstan (17.34%), REPO (17.16% of the portfolio). funds on investment accounts (12.44%), Note that 63.96% of the portfolio is presented in tenge, 36.04% in US dollars.
As a result of investment activities, the return on pension assets managed by Jusan Invest JSC has amounted to 1.49% since the beginning of the year.
A detailed structure of the investment portfolio of financial instruments managed by Jusan Invest JSC, indicating issuers, is presented on the UAPF website.
As of September 1, 2022, pension assets held in trust by Halyk Global Markets JSC amounted to KZT2.58 bln. In the portfolio structure, reverse repo (no more than 90 calendar days) is 51.73%, equity instruments of foreign issuers (ETF Units) 15.07%, bonds of quasi-public organizations of the Republic of Kazakhstan 9.53%, cash on accounts 8.85%, bonds second-tier banks of the Republic of Kazakhstan 5.68%, MFIs 4.71%, corporate bonds of organizations of the Republic of Kazakhstan - 4.45%. Investments in the national currency amounted to 78.26% of the portfolio, in US dollars - 21.74%. Return on pension assets managed by Halyk Global Markets JSC from 01.01.2022 until 01.09.2022 amounted to 1.19%.
A detailed structure of the investment portfolio of financial instruments managed by Halyk Global Markets JSC with indication of issuers is presented on the UAPF website.
Pension assets held in trust by BCC Invest JSC as of September 1 this year amounted to KZT1.49 bln. They are distributed in government bonds of the Republic of Kazakhstan 43.04%, shares (ETF for indices) 20.92%, bonds of quasi-public organizations of the Republic of Kazakhstan 9.64%, shares and depository receipts of foreign issuers 8.61%, bonds of IFIs 6.16%, bonds of second-tier banks of the Republic of Kazakhstan 5.38%, corporate bonds of issuers-residents of the Republic of Kazakhstan 5.10%, cash on investment accounts 1.04%, other assets (accounts receivable, overdue debt, provisions) 0.11%. 70.16% of the portfolio was invested in instruments in national currency, 29.84% in US dollars.
As a result of investment activities, the return on pension assets managed by BCC Invest JSC has amounted to 0.82% since the beginning of this year.
A detailed structure of the investment portfolio of financial instruments managed by BCC Invest JSC with an indication of issuers is presented on the UAPF website.
As of September 1, 2022, UAPF pension assets held in trust by Centras Securities JSC amounted to KZT0.97 bln. They are invested in government securities of the Ministry of Finance of the Republic of Kazakhstan 53.89%, cash on investment accounts 19.39%, REPO 16.17%, shares and depositary receipts of issuers of the Republic of Kazakhstan 8.73%, equity instruments of foreign issuers (ETF Units) 1.82%. 81.95% of the portfolio was invested in instruments in national currency, 18.05% in US dollars.
As a result of investment activities, the profitability of pension assets managed by Centras Securities JSC since the beginning of 2022 amounted to 2.07%.
A detailed structure of the investment portfolio of financial instruments managed by Centras Securities JSC with an indication of issuers is presented on the UAPF website.
Recall that after receiving pension assets from UAPF, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the IPM Investment Declaration.
When transferring pension savings to IPM management, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of profitability of pension assets. The minimum level of return is calculated based on the weighted average return on pension assets transferred to the management of an IPM operating on the market.
The UAPF was established on August 22, 2013 on the basis of GNPF APF JSC. The UAPF founder and shareholder is the Government of the Republic of Kazakhstan represented by the State Institution “Committee of State Property and Privatization” of the Ministry of Finance of the Republic of Kazakhstan. UAPF pension assets are managed by the National Bank of the Republic of Kazakhstan. From January 1, 2016, the functions for developing proposals to improve the management of pension assets were transferred to the National Fund Management Council. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, pension benefits, individual accounting of pension accumulations and benefits, provides the contributor (beneficiary) with information on the status of his pension accumulations (for more information visit www.enpf.kz)