INFORMATIONAL MESSAGE
Investment portfolios of pension assets managed by the NBK and UIP as of May 1, 2022
Pension asset management investment activities are transparent. On the enpf website.kz in the "Indicators – Investment Activity" section, detailed information 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, is posted monthly. At the moment, the information is updated as of May 1, 2022.
It follows from the submitted reports: the total amount of pension assets under management as of May 1, 2022, amounted to about 13.0 trillion tenge. At the same time, the pension assets of the UAPF held in trust by the NBK amounted to KZT 12,914.3 billion. Pension assets under the management of the UIP amounted to 8.9 billion tenge.
Investment portfolio of pension assets managed by the NBK
As of May 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 the NBK (as a trustee) in financial instruments are as follows:
The main share in the portfolio of the UAPF PA is occupied by the State securities of the Ministry of Finance of the Republic of Kazakhstan, the current value of which amounted to 5,331,96 billion tenge. Their share in the portfolio was 41.29. As of May 1, 2022, the weighted average yield to maturity on government securities of the Ministry of Finance of the Republic of Kazakhstan denominated in tenge amounted to 10.8% per annum, in US dollars – 3.4% per annum.
bonds of quasi-governmental organizations of the Republic of Kazakhstan have a current value of 1,698.75 billion tenge (the share in the portfolio was 13.15%). The weighted average yield to maturity on bonds of quasi–governmental organizations of the Republic of Kazakhstan denominated in tenge amounted to 10.8% per annum, in US dollars - 5.5% per annum.
- bonds of second-tier banks of the Republic of Kazakhstan in the amount of 927.44 billion tenge (7.18%). As of the reporting date, the weighted average yield to maturity on the bonds of the STB RK amounted to 10.7% per annum.
- government securities of foreign states in the liquidity sub-portfolio amounted to KZT 734.24 billion. Their share in the portfolio was 5.69%. The weighted average yield to maturity of foreign state securities in the portfolio of the UAPF PA at the reporting date was 0.6% per annum.
- bonds of international financial organizations amounted to KZT 401.08 billion. Their share in the portfolio was 3.11%. The weighted average yield to maturity on bonds of international financial organizations was 10.0% per annum.
- the current value of deposits in the National Bank of the Republic of Kazakhstan at the reporting date amounted to 320.84 billion tenge. Their share in the portfolio was 2.48%. The weighted average yield is 12.79% per annum.
- the value of shares and depositary receipts of issuers of the Republic of Kazakhstan amounted to 264.77 billion tenge. Their share in the portfolio was 2.05%. In the period under review, there were no purchases and sales of shares and depositary receipts of issuers of the Republic of Kazakhstan.
- deposits in second-tier banks amounted to KZT 198.55 billion. Their share in the portfolio is 1.54%. The weighted average yield to maturity of deposits of STB RK at the reporting date was 9.1% per annum.
- the value of corporate bonds of foreign issuers amounted to 4.46 billion tenge. Their share in the portfolio was 0.03%. The weighted average yield to maturity of corporate bonds of foreign issuers in the portfolio of PA UAPF at the reporting date was 10.5% per annum.
- the cost of PPN (structural notes) foreign issuers in the reporting month amounted to 11.22 billion tenge. Their share in the portfolio was 0.09%. Sales, repayments and purchases of PPN (structural notes) there were no foreign issuers.
- the value of corporate bonds of issuers of the Republic of Kazakhstan amounted to 16.25 billion tenge. Their share in the portfolio was 0.13%. In the period under review, there were no purchases, sales and repayments of corporate bonds of issuers of the Republic of Kazakhstan.
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 national currency – 68.26%, in US dollars – 31.67%, in another currency – 0.07% 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 has been positive and amounted to 136.52 billion tenge.
Against the background of the aggravation of the geopolitical situation, increased volatility in global financial markets, accelerated inflation, as well as changes in the value of securities of developed and developing countries, the yield of pension assets of the UAPF, distributed to depositors' (recipients') accounts since the beginning of 2022, amounted to 0.88%.
At the same time, the profitability of pension assets for the last 12 months (from May 2021 to April 2022) for UAPF depositors (recipients) amounted to 8.00%.
The accumulated yield for the period of pension assets management by the National Bank - from April 2014, when the consolidation of pension assets was completed, to April 2022 - amounted to 104.45%. For 8 years from 2014 to 2021, the average annual return on pension assets of the UAPF is 9.68% per annum.
The investment yield since the foundation of the accumulative pension system (1998) on May 1, 2022, with an increasing total, amounted to 688.00% with inflation for the entire period of 593.98%. Thus, the real (i.e. exceeding inflation) return on pension assets for the period from the beginning of the accumulative pension system on May 1, 2022 amounted to 94.02%.
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 8.9 billion tenge.
Pension assets held in trust by JSC "Jusan Invest" amounted to 4.06 billion tenge. They were used to purchase: cash on investment accounts (38.06%), shares of Exchange Traded Funds (ETFs), they make up 33.09%, state securities of the Ministry of Finance of the Republic of Kazakhstan (17.86%), notes of the NBK (10.98% of the portfolio). Note that 62.18% of the portfolio is represented in tenge, 37.82% 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 1.38%.
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 2.50 billion as of May 1, 2022. In the portfolio structure, funds on accounts account for 53.34%, equity instruments of foreign issuers (ETF units) 15.77%, bonds of quasi-governmental organizations of the Republic of Kazakhstan 10.50%, shares and depositary receipts of foreign issuers 6.13%, bonds of second-tier banks of the Republic of Kazakhstan 5.58%, corporate bonds of organizations of the Republic of Kazakhstan 4.37%, MFIs 4.29%, other assets (accounts receivable, overdue debts, provisions) 0.02%. Investments in the national currency accounted for 78.06% of the portfolio, in US dollars - 21.94%. The profitability of pension assets under the management of JSC "Halyk Global Markets" from 01.01.2022 to 30.04.2022 was (-2.64%).
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 1.43 billion tenge as of May 1 of this year. They are distributed in cash on investment accounts 39.17%, shares (ETFs for indices) 22.51%, bonds of quasi-governmental organizations of the Republic of Kazakhstan 12.68%, shares and depositary receipts of foreign issuers 9.20%, bonds of MFIs 5.95%, bonds of STB of the Republic of Kazakhstan 5.33%, corporate bonds of issuers-residents of the Republic of Kazakhstan 5.09%, other assets (accounts receivable debt, overdue debt, provisions) 0.07%. 68.29% of the portfolio was invested in instruments in national currency, 31.77% in US dollars.
As a result of investment activity, the profitability of pension assets under the management of BCC Invest JSC since the beginning of this year has been (-2.07%).
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 May 1, 2022, the pension assets of the UAPF held in trust by Centras Securities JSC amounted to 0.89 billion tenge. They are invested in the State securities of the Ministry of Finance of the Republic of Kazakhstan 56.07%, bonds of quasi-governmental organizations of the Republic of Kazakhstan 14.78%, shares and depositary receipts of issuers of the Republic of Kazakhstan 10.82%, REPO 8.41%, cash on investment accounts 7.80%,
equity instruments of foreign issuers (ETF units) 2.01%, other assets (accounts receivable, overdue debt, provisions) 0.12%. 90.46% of the portfolio was invested in instruments in the national currency, 9.54% 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 has been (-4.26%).
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.