AFS of Kazakhstan characterized the republic's accumulative pension system as of June 1, 2008

/IRBIS, Dinara Mukasheva, June 20, 08/ - Kazakhstan agency for financial market and financial organizations regulation and supervision (FSA) in its scheduled press-release dedicated to the republic's financial market has characterized the country's accumulative pension system as of June 1, 2008. According to AFS, as of June 1, 2008 a total of 14 accumulative pension funds were functioning in Kazakhstan, which have 75 branches and 48 representatives in the regions of republic. The license on investment management of pension assets of accumulative pension funds have 13 legal entities, 9 of them were accumulative pension funds, which had licenses for independent management of pension assets. In May of current year, Accumulative pension fund Senim (subsidiary organization of Eurasian Bank) was given license for independent management of pension assets. Changing of main indicators, characterizing the condition of accumulative pension system of Kazakhstan ------------------------------------------------------------------------------ Changing (in %) relative to values ------------------ As of As of As of As of June May Jan June Indicator 1,08 1,08 1,08 1,07 ------------------------------------------------- --------- ------ ----- ----- The number of individual pension accounts on compulsory pension fees 9,349,986 +0.3 +1.4 +5.6 total sum of pension accumulations (bn. KZT) 1,341.80 +354.5 +11.5 Х Amount of accounts of depositors on voluntary pension fees 41,248 -0.03 +0.8 +4.9 total sum of pension accumulations (m. KZT) 877.9 +3.3 +9.3 +23.9 Amount of accounts of depositors on voluntary professional pension fees 3,993 +0.03 +3.8 +4.6 total sum of pension accumulations (m. KZT) 60.99 +4.6 +16.2 +55.2 Pension savings of depositors 1,346.80 +3.6 +11.5 +32.8 (bn. KZT) Total income of pension fees (bn. KZT) 1,016.60 +2.2 +11.5 +32.0 Total net investment income* 386.8 +7.4 +13.9 +38.5 The sum of pension payments to receivers (bn. KZT) 2.2 -15.4 -85.5 +2.0 ------------------------------------------------- --------- ------ ----- ----- Transfers of pension accumulations to other funds (bn. KZT) 253.5 +3.9 +20.8 +1.5 ------------------------------------------------------------------------------ * from investment of pension assets, distributed for individual pension accounts of investors In total sum of pension savings of depositors, stake of net investment earning as of June 1, 2008 made 28.7%, increasing compared to May of current year by 1.02 basis points. Pension payments and transfers to insurance organizations from accumulative pension funds as of June 1, 2008 made KZT76.4 bn. As of June 1, 2008 average weighted coefficients of nominal income on pension assets of accumulative pension funds made: - For 5 year period (May 2003 - May 2008) - 48.2%. Corrected average weighted coefficient of nominal income - 44.4% (accumulated inflation level for similar period - 60.2%); - For 3 year period (May 2005 - May 2008) - 34.1% (accumulated inflation level for similar period - 40.2%); - For 12 month period (May 2007 - May 2008) - 9.9% (inflation level for similar period - 19.5%). As of June 1, 2008, one accumulative pension fund is in the process of mandatory liquidation by the court decision, 1 accumulative pension fund - APF Valut Transit Fund JSC. In May, 2008, AFS demanded 1 letter-liability for not following the standards of Kazakhstan republic Legislation on accumulative pension system. In May, 2008 AFS`s Board took the resolution according to questions of regulating activity of pension funds "On including amends and additions to resolution of Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated September 23, 2006#217 "On conformation Rules of transferring pension accumulations from accumulative pension funds". [2008-06-20]