UAPF JSC presents a report on the management of pension assets by the National Bank of the Republic of Kazakhstan (NBK) and investment portfolio managers (IPM) as of December 1, 2023 on the website enpf.kz . A detailed report on investing retirement savings is available on the enpf website.kz in the section "Indicators - Investment activity". The total amount of pension assets as of December 1, 2023 amounted to about 17,364.76 billion tenge. At the same time, the pension assets of the UAPF, which are in the trust management of the National Bank of the Republic of Kazakhstan, amounted to KZT 17,347.35 billion. Pension assets under the management of the UIP amounted to KZT 17.41 billion.
Investment portfolio of pension assets managed by the NBK
The main investment directions of the NBRK pension assets as of December 1, 2023 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan – 47.55%, bonds of quasi-state companies – 9.94%, bonds and deposits of second-tier banks of the Republic of Kazakhstan - 6.03%, deposits of the NBRK - 2.67%, securities of international financial organizations – 2.11%, GS foreign countries - 1.46%.
As of December 1, 2023, the investment portfolio in the context of currencies into which financial instruments purchased at the expense of pension assets are denominated looks like this: investments in national currency - 69.29%, in US dollars -30.67%, in another currency - 0.04% of the portfolio of pension assets.
From the analysis of the structure of the income received, it follows that income in the form of remuneration on securities, including on placed deposits and reverse REPO operations and from the market revaluation of securities, amounted to 1,286.94 billion tenge, on assets under external management – 2.12 billion tenge, other income – 4.88 billion tenge. The revaluation of foreign currency was negative and amounted to KZT 14.50 billion.
Thus, due to the diversification of the investment portfolio of pension assets by instruments, industries and currencies, the total income as of 01.12.2023 has been positive since the beginning of the year.
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 as of 01.12.2023 since the beginning of 2023 amounted to 1,279.44 billion tenge.
The profitability of the pension assets of the UAPF, distributed to the accounts of depositors (recipients) since the beginning of 2023, amounted to 8.11% with inflation of 8.9%.
At the same time, as of December 1, 2023, the return on pension assets for the last 12 months (from December 2022 to November 2023) for UAPF depositors (recipients) amounted to 8.9%.
Recall that in the medium and long term, a positive real (exceeding accumulated inflation) return on pension savings is ensured.
The detailed structure of the investment portfolio of financial instruments managed by the NBK, indicating the issuers and an overview of investment activities are posted on the official website of the UAPF. It should be recalled that Kazakhstan has a model of state guarantee of the safety of pension savings. In accordance with article 217 of the Social Code of 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 17.41 billion tenge.
As of 01.12.2023, pension assets held in trust by JSC "Jusan Invest" amounted to 5.4 billion tenge.
The most significant investments of the company are: State Securities of the Ministry of Finance of the Republic of Kazakhstan – 40.89%, shares of Exchange Traded Funds (ETFs) – 22.71%, cash in investment accounts – 18.77%, REPO – 15.88%. It should be noted that 67.90% of the portfolio is represented in tenge; 32.10% - in US dollars.
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 for 2023 as of December 1 amounted to 459.49 million tenge. The return on pension assets was 10.7%.
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.
As of December 01, 2023, pension assets held in trust by Halyk Global Markets JSC amounted to about 3 billion tenge.
The main investments in the portfolio structure are as follows: "reverse REPO" (no more than 90 calendar days) – 39.91%, bonds of quasi–governmental organizations of the Republic of Kazakhstan – 13.65%, equity instruments of foreign issuers (ETF units) – 8.84%, bonds of MFIs - 8.62%, securities with the status of state issued by central governments of foreign states – 8.45%. Investments in national currency accounted for 71.51% of the portfolio, in US dollars - 28.49%.
As a result of investment activity, the amount of accrued investment income as of December 1 from the beginning of 2023 amounted to KZT 354.77 million. The return on pension assets has been 28.61% since the beginning of operations and 13.86% since the beginning of 2023.
The detailed structure of the investment portfolio of financial instruments managed by Halyk Global Markets JSC, indicating the issuers, is presented on the UAPF website.
The pension assets of the UAPF, which are in the trust management of BCC Invest JSC as of December 1, 2023, amounted to 2.6 billion tenge.
Among the main areas of investment are the following: bonds of quasi–governmental organizations of the Republic of Kazakhstan – 26.9%, REPO – 22.34%, government bonds of the Republic of Kazakhstan – 19.05%, shares (ETFs for indices) – 13.93%, US government bonds – 5.52%, cash in investment accounts - 4.27%, bonds of MFIs – 3.32%, corporate bonds of issuers-residents of the Republic of Kazakhstan - 3.01%, portfolio. 73.06% of the portfolio was invested in instruments in the national currency, 26.94% in US dollars.
As a result of investment activity since the beginning of the year as of December 1, 2023, the amount of accrued investment income amounted to KZT 176.27 million. The return on pension assets was 11%.
The detailed structure of the investment portfolio of financial instruments managed by BCC Invest JSC, indicating the issuers, is presented on the UAPF website.
The pension assets of the UAPF, which are in the trust management of Centras Securities JSC, amounted to 987.4 million tenge as of December 1, 2023.
34.51% of assets are invested in the State Securities of the Ministry of Finance of the Republic of Kazakhstan, bonds of quasi–governmental organizations - 19.32%, bonds of the STB of the Republic of Kazakhstan – 16.79%, funds in investment accounts amount to 2.45%; REPO – 9.02%, shares and depositary receipts of issuers of the Republic of Kazakhstan – 8.65%, US government bonds – 8.23%. 75.94% of the portfolio was invested in instruments in the national currency, 24.06% in US dollars.
As a result of investment activities and changes in the market value of financial instruments, the amount of accrued investment income as of December 1, 2023 since the beginning of the year amounted to 89.83 million tenge. The return on pension assets since the beginning of 2023 amounted to 9.11%.
The detailed structure of the investment portfolio of financial instruments managed by Centras Securities JSC, indicating the issuers, is presented on the UAPF website.
As of December 1, 2023, pension assets held in trust by JSC "DO National Bank of Kazakhstan "Halyk Finance" amounted to 5.4 billion tenge.
The main investments in the portfolio structure are as follows: "reverse REPO" (no more than 90 calendar days) – 51.69%, cash on accounts – 12.98%, bonds of quasi–governmental organizations of the Republic of Kazakhstan – 9.77%, State securities of the Ministry of Finance of the Republic of Kazakhstan – 9.13%, shares of Exchange Traded Funds (ETF) - 6.09%, state securities of foreign states – 4.49%.
85.18% of the portfolio was invested in instruments in the national currency, 13.82% in US dollars, and 0.99% in euro currency.
As a result of investment activity, the amount of accrued investment income as of December 1 from the beginning of 2023 amounted to 153.15 million tenge. The return on pension assets since the beginning of 2023 amounted to 15.29%.
The detailed structure of the investment portfolio of financial instruments under the management of JSC "DO Halyk Finance National Bank of Kazakhstan" with the indication of issuers is presented on the UAPF website.
It should be noted 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. 62 of the Board of the National Bank of the Republic of Kazakhstan dated July 01, 2023, and provided for in the Investment Declaration of the UIP. When transferring pension savings to the management of the UIP, the state guarantee 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 UIPS operating in the market.
Recall that from July 1, 2023, depositors can transfer to trust management no more than 50% of pension savings due to mandatory pension contributions (OPV) and mandatory professional pension contributions (OPV) without taking into account the threshold of minimum sufficiency by the investment portfolio manager (IPM), choosing such a company independently. Depositors who have voluntary pension savings can transfer them to their UIP in the amount of 100%.