enpf.kz the website published a report on the management of pension assets of the National Bank of the Republic of Kazakhstan and the IPB as of February 1, 2023. Detailed report on the investment of pension savings enpf.kz in the section "indicators – investment activities" on the website of the company. It provides monthly information on the management of pension assets by the National Bank of the Republic of Kazakhstan (NBRK) and investment portfolio managers (IPB). As previously reported, as of February 1, 2023, the total volume of pension assets amounted to about 14.9 trillion tenge. At the same time, the pension assets of the UAPF under the trust management of the National Bank of the Republic of Kazakhstan are equal to 14,845.94 billion tenge. Pension assets under the management of IPB amounted to 9.57 billion tenge.
Investment portfolio of pension assets under NBRK management
The current structure of the main investments is as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan – 47.96%, bonds of quasi – state companies – 11.27%, bonds and deposits of second – tier banks of the Republic of Kazakhstan – 7.63%, state securities of foreign countries – 5.47%, securities of international financial organizations-2.52%, corporate bonds of Kazakhstani issuers-0.11%.
The investment portfolio in terms of currencies in which financial instruments purchased at the expense of pension assets are denominated as of February 1, 2023 has the following picture: investments in national currency – 71.63%, in US dollars – 28.31%, in other currencies – 0.05% of the portfolio of pension assets. Analyzing the structure of income received, it can be seen that income in the form of interest on securities, including on placed deposits and "reverse repo" transactions and from market revaluation of securities amounted to 111.01 billion tenge, other income – 0.21 billion tenge. And instruments of external management and related to the revaluation of foreign currency caused losses in the amount of 45.03 billion tenge. This confirms the influence of geopolitical factors on the investment income received this year. However, the total income for January 2023 is positive.
The amount of investment income calculated as a result of investment activity, as well as due to volatility of foreign currency rates and changes in the market value of financial instruments, since the beginning of 2023 reached 66.19 billion tenge.
Against the background of the aggravation of the geopolitical situation, increased volatility in global financial markets, accelerated inflation, as well as an increase in yield on bonds of developed and developing countries, since the beginning of 2023, the yield of pension assets of the UAPF allocated to the accounts of depositors (recipients) was equal to 0.44%.
At the same time, as of February 1, 2023, the return on pension assets for uapf depositors (recipients) for the last 12 months (from February 2022 to January 2023) showed 6.93%.
It is important to note that the profitability of pension assets in separate short periods of time cannot serve as an indicator of the effectiveness of their management. Pension assets are characterized by a long investment horizon. One of the main goals of their investment is to generate real income in the long term. The cumulative yield for the period from April 2014 to January 2023, when the consolidation of pension assets was completed, is 116.88%. For 9 years from 2014 to 2022, the return on pension assets of the UAPF is equal to 9.33% in annual terms.
A detailed structure of the investment portfolio of financial instruments under the management of the National Bank of the Republic of Kazakhstan with an indication of issuers and an overview of investment activities is posted on the official website of the UAPF. We remind that Kazakhstan has a model of state guarantees for 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 professional pension contributions to the UAPF in the amount of actually made contributions, taking into account the level of inflation at the time of receipt of the right to pension payments.
Investment portfolio managers
The total amount of funds managed by IPB is 9.57 billion tenge.
As of 01.02.2023, pension assets under trust management of Jusan Invest JSC amounted to 4.29 billion tenge. The most important deposits of the company: Exchange Traded Funds (ETF) units – 31.52% of the portfolio; NBRK notes – 29.17%, GF of the Ministry of Finance of the Republic of Kazakhstan – 20.56%. The amount of cash in accounts is 10.10%. It should be noted that 59.57% of the portfolio is represented in tenge; 40.43% - in US dollars.
As a result of investment activity, as well as due to the volatility of foreign currency rates and changes in the market value of financial instruments, the amount of investment income calculated in January 2023 amounted to 106.19 million tenge. The return on pension assets is 2.40%.
A detailed structure of the investment portfolio of financial instruments under the management of Jusan Invest JSC with the indication of issuers is presented on the UAPF website.
Pension assets under trust management of Halyk Global Markets JSC – 2.68 billion tenge. The main investments in the portfolio structure are:" reverse repo " (no more than 90 calendar days) 54.77%; equity instruments of foreign issuers (ETF units) - 13.2%; bonds of quasi - state organizations of the Republic of Kazakhstan – 12.45%; securities issued by central governments of foreign states with state status-6.66%. Investments in national currency amounted to 79.32% of the portfolio, in US dollars-20.68%.
As a result of investment activity, the amount of investment income calculated in January 2023 reached 62.26 million tenge. The return on pension assets since the beginning of 2023 is equal to 2.20%.
A detailed structure of the investment portfolio of issuers of financial instruments managed by Halyk Global Markets JSC is presented on the UAPF website
Pension assets under trust management of BCC Invest JSC – 1.57 billion tenge. Among the main areas of investment, the following can be distinguished: government bonds of the Republic of Kazakhstan – 49.61% of the portfolio; bonds of quasi – state organizations of the Republic of Kazakhstan – 21.52%; Shares (ETFs for indices) - 9.09%. 78.4% of the portfolio was invested in instruments in the national currency, in US dollars – 21.6%.
As a result of investment activity, the amount of investment income calculated in January 2023 amounted to 31.06 million tenge. The return on pension assets is 1.89%. Most of the accrued investment income is accounted for by interest on" reverse repo " transactions and income from market revaluation of securities.
A detailed structure of the investment portfolio of issuers of financial instruments under the management of BCC Invest JSC is published on the UAPF website.
Pension assets under trust management of Centras Securities JSC – 1.01 billion tenge. 68.48% of assets were invested in the state enterprise of the Ministry of Finance of the Republic of Kazakhstan; cash on investment accounts-11.93%; bonds of quasi – public organizations – 8.74%. 79.33% of the portfolio was invested in instruments in the national currency, in US dollars – 20.67%.
As a result of investment activities and changes in the market value of financial instruments, the amount of investment income calculated in January 2023 reached 5.58 million tenge. The return on pension assets shown in January 2023 was 0.52%.
A detailed structure of the investment portfolio of financial instruments under the management of Centras Securities JSC with the indication of issuers is presented on the UAPF website.
It should be recalled that after receiving pension assets from the UAPF, IPB invests them in financial instruments specified in the rules for carrying out 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 allowed in the IPB investment declaration.
When transferring pension savings to IPB 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 profitability is calculated based on the weighted average return on pension assets transferred to the management of IPB operating in the market.
The UAPF was established on August 22, 2013 on the basis of JSC NPF "GNPF". The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan through the state institution "state property and privatization committee" of the Ministry of Finance of the Republic of Kazakhstan. Trust management of pension assets of the UAPF is carried out by the National Bank of the Republic of Kazakhstan. Since January 1, 2016, the National Fund Management Council, headed by the president of the Republic of Kazakhstan, has been responsible for developing proposals to improve the efficiency of pension asset management. In accordance with the pension legislation, the UAPF carries out the attraction of mandatory pension contributions, mandatory professional pension contributions, voluntary pension contributions, individual accounting of pension payments, pension savings and payments, provides information to the Depositor (recipient) about the state of pension savings (read more www.enpf.kz on the website).