Investment portfolios of pension assets as of April 1, 2023
On the enpf website.kz presents a report on the management of pension assets of the NBK and UIP as of April 1, 2023. A detailed report on investing pension savings is available on the enpf website.kz in the section "Indicators - Investment activity", which provides monthly information on the management of pension assets by the National Bank of the Republic of Kazakhstan (NBK) and investment portfolio managers (UIP). The total amount of pension assets as of April 1, 2023 amounted to about 15,401.08 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 15,391.36 billion tenge. Pension assets under the management of the UIP amounted to 9.72 billion tenge.
Investment portfolio of pension assets managed by the NBK
The main investment directions of pension assets of the NBK as of April 1, 2023 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan – 47.22%, bonds of quasi–state companies – 11.03%, bonds and deposits of second–tier banks of the Republic of Kazakhstan – 7.07%, state securities of foreign states - 5.64%, securities of international financial organizations - 2.46%, corporate bonds of Kazakhstani issuers – 0.10%.
The investment portfolio in the context of currencies in which financial instruments purchased at the expense of pension assets are denominated, as of April 1, 2023, is as follows: investments in national currency – 71.55%, in US dollars – 28.39%, in another currency – 0.05% 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 435.62 billion tenge, other income – 1.29 billion tenge. And the instruments that are under external management and related to the revaluation of foreign currency brought losses in the amount of 91.24 billion tenge, which confirms the impact of the unstable geopolitical situation, high volatility in global financial markets and inflation on the investment income received this year.
Despite unfavorable external and internal factors, due to the diversification of the investment portfolio of pension assets by instruments, industries and currencies, the total income for March 2023 is positive.
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 2023 amounted to 345.67 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 2.26% with inflation of 3.20%.
At the same time, as of April 1, 2023, the profitability of pension assets for the last 12 months (from April 2022 to March 2023) for UAPF depositors (recipients) amounted to 6.63%.
Recall that in the medium and long term, a positive real (exceeding accumulated inflation) return on pension savings is provided.
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 9.72 billion tenge.
As of 01.04.2023, pension assets held in trust by JSC "Jusan Invest" amounted to 4.3 billion tenge.
The company's most significant investments are: NBK notes - 31.09%, Exchange Traded Funds (ETF) units – 30.33% of the portfolio; State securities of the Ministry of Finance of the Republic of Kazakhstan – 24.09%. State securities of foreign states make up 8.46%. It should be noted that 60.73% of the portfolio is represented in tenge; 39.27% - in US dollars.
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 for 2023 amounted to 147.84 million tenge. The return on pension assets was 3.35%.
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 April 1, 2023, pension assets held in trust by JSC "Halyk Global Markets" amounted to 2.7 billion tenge.
The main investments in the portfolio structure are as follows: "reverse REPO" (no more than 90 calendar days) is 41.37%; equity instruments of foreign issuers (ETF units) - 13.61%; bonds of quasi-governmental organizations of the Republic of Kazakhstan – 11.88%; bonds of MFIs - 9.32%, notes of the NBK – 8.98%, securities with the status of state, issued by the central governments of foreign states – 6.57%. Investments in national currency accounted for 79.78% of the portfolio, in US dollars – 20.22%.
As a result of investment activity, the amount of accrued investment income for 3 months of the current year amounted to 83.27 million tenge. The return on pension assets has been 2.93% since the beginning of 2023.
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 of the UAPF, which are in the trust management of JSC "BCC Invest", amounted to 1.6 billion tenge.
Among the main areas of investment are the following: government bonds of the Republic of Kazakhstan – 51.75% of the portfolio; bonds of quasi–governmental organizations of the Republic of Kazakhstan – 20.48%; shares (ETFs for indices) - 9.69%, shares and depositary receipts of foreign issuers – 5.18%. 79.22% of the portfolio was invested in instruments in the national currency, 20.78% in US dollars.
As a result of investment activity, the amount of accrued investment income since the beginning of the year amounted to 35.15 million tenge. The return on pension assets is 2.12%. Most of the accrued investment income came from remuneration for reverse repo operations and income from market revaluation of securities.
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.
The pension assets of the UAPF, which are in the trust management of Centras Securities JSC, amounted to 1.03 billion tenge.
63.17% of assets are invested in the State Securities of the Ministry of Finance of the Republic of Kazakhstan; funds in investment accounts amount to 10.76%; bonds of quasi-governmental organizations - 8.33%, shares and depositary receipts issued by organizations of the Republic of Kazakhstan - 7.62%. 79.08% of the portfolio was invested in instruments in the national currency, 20.92% in US dollars.
As a result of investment activity and changes in the market value of financial instruments, the amount of accrued investment income since the beginning of 2023 amounted to KZT 20.88 million. The return on pension assets is 1.88%.
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.
As of April 1, 2023, pension assets held in trust by JSC "DO Halyk Finance National Bank of Kazakhstan" amounted to KZT 162.36 million.
Investments in the portfolio structure are as follows: "reverse REPO" (no more than 90 calendar days) is 85.67%, bonds of quasi-governmental organizations of the Republic of Kazakhstan – 7.40%, MFOs – 2.98%, NBK notes – 2.95%, cash on accounts - 1%.
100% of the portfolio is invested in instruments in the national currency. As a result of investment activity, the amount of accrued investment income from the beginning of 2023 amounted to 2.01 million tenge. The return on pension assets is 2.86%.
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.
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 UIPS operating in the market.