ANALYSIS: According to data of AFS, amount of net pension assets in Kazakhstan as of March 1, 2007 reached $7,590.7 m.

/IRBIS, Sergey Yakovlev, Andrey Tsalyuk, April 3, 07/ - According to data of the Agency of the Republic of Kazakhstan for regulation and supervision of the financial market and financial organizations (AFS) the total amount of net pension assets (PA) in the republic (total pension assets excluding obligations on charged commission interests, creditors' debts on pension payments) as of March 1, 2007 reached KZT947,398.3 m. or equivalent $7,590.7 m. at the weighted average exchange's rate effective on the mentioned date. Corresponding indicator as of February 1, 2007 - KZT930,938.4 m. or $7,378.0 m. In February 2007 net assets of accumulative pension funds (APF) grew by 1.8% in tenge and by 2.9% in dollar equivalent. In January 2007 assets increased by 2.3% in tenge and by 3.0% in dollar equivalent. By the beginning of March 2007 the total amount of PA totaled KZT948,375.2 m., out of them KZT937,570.6 m. were invested. During February 2007, in all, there were seven specialized organizations carrying out pension assets investment management activity (PAIMO) and 14 APF. Six funds - Accumulative pension fund of Halyk Bank of Kazakhstan JSC, APF SAPF JSC, APF BTA Kazakhstan JSC, APF Capital JSC, APF Kazakhmys JSC and OAPF Otan JSC, which actually are PAIMO as well, controlled pension assets independently. Share of PA, which was controlled by these funds, by the beginning of March 2006, totaled 62.1% out of the entire amount of PA of the republic (as of February 1 this indicator was 61.4%). PAIMO ALFA TRUST JSC and PAIMO Premier Asset Management JSC as of March 1, 2006 do not have assets in the management. But according to the data of AFS personnel, the companies execute all prudential norms and, therefore, they are regarded as acting (since March 21, 2007 PAIMO Premier Asset Management signed a contract about transfer of pension assets of AP Valut-Transit Fund JSC in its pension assets management, but now these PA are in the management of PAIMO Active-Invest JSC.) The table below presents volumes of assets of each fund (KZT m., unless otherwise indicated) and distribution of APF assets by PAIMO as of March 1, 2007. Figures in parentheses give the same picture as of February 1, 2007. -------------------------------------------------------------------- Total assets ------- ------------- Net % of all PA pension of Name of PAIMO / APF assets Volume Kazakhstan Invested -------------------------------------------------------------------- PAIMO GRANTUM Asset Management JSC -------------------------------------------------------------------- GRANTUM APF JSC 60,924 61,040 6.44,(6.40) 60,846 ----------------------------- ------- ------- ------------- -------- Total 60,924 61,040 6.44,(6.40) 60,846 ----------------------------- ------- ------- ------------- -------- PAIMO Bailyk Asset Management JSC -------------------------------------------------------------------- PAPF of open type named after 4,747 4,759 0.50,(0.48) 4,669 Kunayev JSC OAPF SENIM JSC 37,175 37,309 3.93,(3.87) 36,998 APF Korgau JSC 13,184 13,203 1.39,(1.39) 13,051 APF NefteGas-Dem JSC 22,424 22,472 2.37,(2.33) 21,292 ----------------------------- ------- ------- ------------- -------- Total 77,530 77,742 8.20,(8.06) 76,010 ----------------------------- ------- ------- ------------- -------- PAIMO ZHETYSU JSC -------------------------------------------------------------------- APF UlarUmit JSC 166,228 165,519 17.45,(18.14) 165,319 ----------------------------- ------- ------- ------------- -------- Total 166,228 165,519 17.45,(18.14) 165,319 ----------------------------- ------- ------- ------------- -------- PAIMO Activ-Invest JSC -------------------------------------------------------------------- AP Valut-Transit Fund JSC 30,788 30,814 3.25,(3.48) 30,562 Total 30,788 30,814 3.25,(3.48) 30,562 ----------------------------- ------- ------- ------------- -------- PAIMO Nur-Trust JSC -------------------------------------------------------------------- OAPF Atameken JSC 24,211 24,244 2.56,(2.53) 23,902 ----------------------------- ------- ------- ------------- -------- Total 24,211 24,244 2.56,(2.53) 23,902 ----------------------------- ------- ------- ------------- -------- APF, operating as pension assets management companies independently ----------------------------- ------- ------- ------------- -------- APF SAPF JSC 168,713 169,063 17.83,(17.78) 165,812 APF SB JSC Bank TuranAlem BTA 89,447 89,566 9.44,(9.25) 89,472 Kazakhstan JSC APF of Halyk 265,892 266,545 28.11,(27.76) 262,449 Bank of Kazakhstan JSC APF Capital JSC 21,270 21,310 2.25,(2.19) 21,255 ----------------------------- ------- ------- ------------- -------- APF Kazakhmys JSC 21,184 21,235 2.24,(2.22) 20,956 ----------------------------- ------- ------- ------------- -------- OAPF Otan JSC 21,211 21,296 2.25,(2.17) 20,988 ----------------------------- ------- ------- ------------- -------- Total 587,717 589,015 62.11,(61.38) 580,931 ----------------------------- ------- ------- ------------- -------- TOTAL pension assets 947,398 948,375 100.0 937,571 -------------------------------------------------------------------- The biggest APF by the end of February from the point of net PA volume (in descending order of PA amount): APF Halyk Bank of Kazakhstan JSC, APF Ular Ymit JSC and APF SAPF JSC. By the volume of managed assets APF Halyk Bank of Kazakhstan JSC keeps on leading (28.11% of all PA in management). The second place belongs to APF SAPF JSC (17.83%); the third place PAIMO ZHETYSU JSC - (17.45%). The highest asset growth rate (6.54% in tenge) in Febraury was recorded in PAPF of open type named after D. Kunayev JSC. In absolute monetary terms on the biggest amount of asset growth the leader is APF of Halyk Bank of Kazakhstan JSC (growth by KZT7,478.3 m.). The second place by this indicator belongs to DO of Bank TuranAlem JSC APF BTA Kazakhstan JSC. Its assets grew by KZT3,218.0 m. within the month. The third one is APF SAPF JSC (growth by KZT3,080.2 m.). Invested assets by financial instruments as of March 1, 2007 were allocated as follows (figures in parentheses display data for previous two months in reverse chronological order, % are given from full PA): - long-term domestic GS of Ministry of Finance (KZT) - 19.59% (20.08%; 19.09%); - eurobonds of Kazakhstan sovereign debt - 0.11% (0.07%; 0.08%); - short-term domestic GS of the Ministry of Finance and the National Bank (KZT) - 9.76% (7.8%; 4.0%); - bonds of domestic municipal authorities of Kazakhstan (USD) - 0.00% (0.00%; 0.00%); - stocks of foreign issuers (foreign currencies) - 0.17% (0.00%; 0.06%); - corporate bonds of foreign issuers (foreign currencies) - 6.90% (5.95%; 7.96%); - foreign states' securities - 0.06% (0.57%; 0,02%); - securities of international financial organizations - 0.00% (0.00%; 0.00%); - stocks of Kazakhstan companies - 17.23% (18.29%; 23.07%); - bonds of Kazakhstan companies - 27.17% (27.54%; 27.66%); - deposits and deposit certificates in the National bank of Kazakhstan and the second tier banks (KZT) - 17.19% (16.45%; 15.96%) - deposits and deposit certificates (foreign currencies) - 0.00% (0.00%; 0.00%); - refined gold - 0.63% (0.48%; 0.49%); - stocks of Kazakhstan investment funds - 0.00% (0.00%; 0.00%); - shares of foreign investments funds - 0.00% (0.01%; 0.01%); - derivative instruments - 0.06% (0.03%, N/A). Funds on investment accounts and other assets according to data of AFS as of February 1 were 1.13% (2.74%; 1.87%) of the total amount of PA. The given data evidence that tendencies in February pension market happened to be quite interesting. Correction development in the stock market this month brought to decrease of investment share of PA in share securities of Kazakhstani issuers. Domestic issuers of corporate bonds did not succeed as well. Moreover, it seems like after the change in rules of PA investment at the beginning of the current year they will face not the best times. Offering of new issues, which issuers and their financial consultants try to conduct in the old manner, that are counting upon "pantophagy" of pension market subjects, come more difficult. Pension funds express intractability inappropriate to them and now compete in this context even with banks. Ask on bonds from the side of pension market subjects has become very tough in terms of price, and majority of bond issuers are psychologically yet not ready to compromise. It appears that "expectation instruments" for managers of PA in this situation were notes of the National Bank, deposits in second-tier banks, as well as, somewhat unexpectedly, refined gold. Investment share in these instruments has notably increased. In March IRBIS analysts are also inclined to expect remarkable changes in the PA management methods, which is conditioned by modification of legislation in given market segment. [2007-04-03]