ANALYSIS: According to data of AFS, amount of net pension assets in Kazakhstan as of March 1, 2008 reached $10,342.0 m.
/IRBIS, Vitaliy Tomskiy, April 29, 2008/ - According to the data of the Agency of the Republic of Kazakhstan on Regulation and Supervision of 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, 2008 reached KZT1,249,826.4 m. or equivalent $10,342.0 m. at the weighted average exchange's rate effective on the mentioned date. Corresponding indicator as of February 1, 2008 - KZT1,221,384.6 m. or $10,160.4 m.
In February 2008 net assets of accumulative pension funds (APF) grew by 2.33% in tenge and by 1.79% in dollar terms. In January 2008 assets increased by 1.10% in tenge and in dollar equivalent by 1.17%.
As of the beginning of March 2008, the total sum of pension assets made KZT1,251,892.8 m., from them KZT1,225,533.8 were invested.
During February 2008, there were five 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 were PAIMO as well, pension assets were controlled independently. Share of PA, which were controlled by these funds, totaled 64.3% out of the entire amount of PA of the republic, by the beginning of March 2008 (as of February 1, this indicator was 64.1%).
February 7 IAPF of open type, named after Kunaev D. JSC and February 26 APF NefteGas-Dem JSC got license from AFS on independent control of pension assets. Before this moment assets of both funds were under PAIMO Bailyk Asset Management JSC control, which license operation on execution of broker and dealer activity was stopped by AFS for 6 months from February 29 for violation of deals conclusion sequence with securities.
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, 2008. Figures in parentheses give the same picture as of February 1, 2008.
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Total assets
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Net % of all PA
pension of
Name of PAIMO / APF assets Volume Kazakhstan Invested
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PAIMO GRANTUM Asset Management JSC
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GRANTUM APF JSC 75,487 75,634 6.04,(6.08) 73,882
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Total 75,487 75,634 6.04,(6.08) 73,882
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PAIMO Bailyk Asset Management JSC
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PAPF of open type named after
Kunayev JSC 29,698 29,761 2.38,(2.47) 29,524
OAPF SENIM JSC 43,849 43,911 3.51,(3.55) 43,495
APF Korgau JSC 18,304 18,343 1.47,(1.45) 18,220
APF NefteGas-Dem JSC 30,360 30,346 2.42,(2.45) 29,841
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Total 122,211 122,360 9.77,(9.92) 121,079
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PAIMO ZHETYSU JSC
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APF UlarUmit JSC 216,317 216,447 17.29,(17.34) 214,170
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Total 216,317 216,447 17.29,(17.34) 214,170
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PAIMO Premier Asset Management JSC
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APF Respublika JSC 2,537 2,540 0.20,(0.16) 2,460
Total 2,537 2,540 0.20,(0.16) 2,460
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PAIMO Nur-Trust JSC
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OAPF Atameken JSC 30,519 30,514 2.44,(2.43) 30,379
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Total 30,519 30,514 2.44,(2.43) 30,379
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APF, operating as pension assets management companies independently
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APF SAPF JSC 209,908 210,301 16.80,(16.92) 206,129
APF SB JSC Bank TuranAlem BTA
Kazakhstan JSC 134,484 135,069 10.79,(10.63) 131,803
APF of Halyk 364,218 364,664 29.13,(29.03) 351,874
Bank of Kazakhstan JSC
APF Capital JSC 36,994 37,097 2.96,(2.93) 37,060
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APF Kazakhmys JSC 25,543 25,594 2.04,(2.06) 25,170
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OAPF Otan JSC 31,609 31,671 2.53,(2.51) 31,529
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Total 802,757 804,398 64.25,(64.08) 783,563
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TOTAL pension assets 1,249,826 1,251,893 100.0 1,225,534
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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 the managed assets APF Halyk Bank of Kazakhstan JSC keeps on leading (29.13% of all PA in management). The second place belongs to APF Ular Umit JSC (17.29%); the third place APF SAPF JSC - (16.80%).
The highest asset growth rate (31.87% in tenge) in February was recorded in APF REPUBLIC JSC. In absolute monetary terms on the biggest amount of asset growth the leader is to APF Halyk Bank of Kazakhstan JSC (growth by KZT9,909.2 m.). The second place by this indicator belongs to APF BTA Kazakhstan JSC. Its assets have grown during the month by KZT5,199.9 m., the third place belongs to APF UlarUmit JSC (growth by KZT4,466.8 m.)
Invested assets by financial instruments as of March 1, 2008 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) - 20.30% (21.67%; 20.97%);
- short-term domestic GS of the Ministry of Finance and the National Bank (KZT) - 4.87% (3.83%; 4.06%);
- stocks of foreign issuers (foreign currencies) - 3.28% (2.44%; 1.71%);
- corporate bonds of foreign issuers (foreign currencies) - 6.90% (6.74%; 6.86%);
- foreign states' securities - 4.12% (2.37%; 2.85%);
- stocks of Kazakhstan companies - 13.64% (14.40%; 15.66%);
- bonds of Kazakhstan companies - 30.83% (30.48%; 30.02%);
- deposits and deposit certificates in the National bank of Kazakhstan and the second tier banks (KZT) - 12.15% (13.07%; 13.44 %)
- deposits and deposit certificates (foreign currencies) - 0.79% (1.70%; 1.15%);
- refined gold - 0.97% (0.95%;1.87%);
- derivative instruments - -0.03% (-0.12 %; -0.10 %).
Funds on investment accounts and other assets according to data of AFS as of March 1 were 2.12% (2.47%; 1.40%) of the total amount of PA.
As we see from investment structure of pension assets, country APF in February continues process of diversification of its aggregated portfolio under uncertainty conditions on financial markets. With jump inflation in Kazakhstan and high volatility on the first place fund ability for risks decreasing of insurance character comes. As a result, last month some funds announced openly about the wish to enter the markets of developing countries and diversify risks by geographic criteria.
This tendency can be followed by investments increasing in foreign states securities (growth relative to the previous month in 2 times). At the same time the stake of investments in domestic companies continued to fall. In our opinion the reason of it is universal risks revaluation. High volatility, observed in this segment since the beginning of financial system instability, provokes managing companies to search for the least risk instruments.
At the same time, relatively balanced situation in debt securities segment is explained, in our opinion, by investment strategy of many funds. Usually these securities are purchased for a long term. Besides, the opportunity of getting cyclic bonus also played a big role.
In the whole we think that entrance on foreign markets for managers of pension assets will become the main strategy for the nearest future. Otherwise, it will be difficult to support decent yield level only on instruments of home market.
[2008-04-29]