ANALYSIS: According to AFS, Kazakhstan net pension assets reach $11,316.2 m. as of July 1, 2008
/IRBIS, Vitaliy Tomskiy, July 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 July 1, 2008 reached KZT1,366,435.5 m. or equivalent of $11,316.2 m. at the weighted average exchange rate effective on the mentioned date. Corresponding indicator as of June 1, 2008 - KZT1,346,750.0 m. or $11,170.0 m.
In June 2008 net assets of accumulative pension funds (APF) grew by 1.46 % in tenge and by 1.31 % in dollar terms. In May 2008 assets increased by 3.59 % in tenge and by 3.42 % in dollar equivalent.
As of the beginning of July 2008, the total sum of pension assets made KZT1,367,520.1 m., of which KZT1,343,352.4 were invested.
During June 2008, there were four specialized organizations carrying out pension assets investment management activity (PAIMO) and 14 APF. Nine funds - Accumulative pension fund of Halyk Bank of Kazakhstan JSC, APF SAPF JSC, SB JSC Bank TuranAlem JSC, APF BTA Kazakhstan JSC, APF Capital JSC, APF Kazakhmys JSC and OAPF Otan JSC, OAPF named after Kunaev D.A. JSC, APF NefteGas-Dem JSC and APF SENIM JSC which actually were PAIMO as well, pension assets were controlled independently. Share of PA, which were controlled by these funds, totaled 73.8 % out of the entire amount of PA of the republic, by the beginning of July 2008 (as of June 1, this indicator was 72.6 %).
The table below presents volumes of assets of each fund (KZT m., unless otherwise indicated) and distribution of APF assets by PAIMO as of July 1, 2008. Figures in parentheses give the same picture as of June 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 80,917 81,058 5.93 (5.89) 79,972
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Total 80,917 81,058 5.93 (5.89) 79,972
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PAIMO ZHETYSU JSC
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APF UlarUmit JSC 229,612 228,773 16.73 (17.27) 227,066
APF Korgau JSC 20,378 20,429 1.49 (1.47) 20,339
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Total 249,990 249,203 18.22 (18.74) 247,405
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PAIMO Premier Asset Management JSC
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APF Respublika JSC 5,073 5,050 0.37 (0.33) 5,043
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Total 5,073 5,050 0.37 (0.33) 5,043
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PAIMO Nur-Trust JSC
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OAPF Atameken JSC 32,754 32,839 2.40 (2.39) 32,608
Total 32,754 32,839 2.40 (2.39) 32,608
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APF, operating as pension assets management companies independently
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OAPF named after Kunaev D.A. JSC 28,925 29,008 2.12 (2.13) 28,599
APF SENIM JSC 43,562 43,722 3.20 (3.21) 43,587
APF NefteGas-Dem JSC 34,416 34,565 2.53 (2.46) 34,483
APF SAPF JSC 224,268 224,503 16.42 (16.50) 217,134
APF SB JSC Bank TuranAlem BTA
Kazakhstan JSC 154,556 154,982 11.33 (11.08) 151,637
APF of Halyk 404,076 404,389 29.57 (29.53) 396,055
Bank of Kazakhstan JSC
APF Kazakhmys 27,797 27,869 2.04 (2.02) 27,530
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OAPF Otan JSC 36,468 36,580 2.67 (2.61) 35,913
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JSC APF Capital JSC 43,668 43,751 3.20 (3.11) 43,387
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Total 997,737 999,370 73.08 (72.64) 978,325
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TOTAL pension assets 1,366,436 1,367,520 100.00 1,343,352
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The biggest APF by the end of June 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 is still leading (29.57 % of all PA in management). The second place belongs to APF Ular Umit JSC (16.73 %); the third place APF SAPF JSC - (16.42 %).
The highest asset growth rate (13.27 % in tenge) in June was recorded in APF REPUBLIC JSC. In absolute monetary terms on the biggest amount of asset growth the leader is APF DB JSC Bank TuranAlem BTA Kazakhstan JSC to (growth by KZT5,114.7 m.). The second place by this indicator belongs to APF Halyk Bank of Kazakhstan JSC. Its assets have grown during the month by KZT5,068.7 m., the third place belongs to APF Capital JSC (growth by KZT1,752.5 m.) Decreasing of pension assets was fixed at APF Ular Umit JSC (by KZT4,795.2 m.).
Invested assets by financial instruments as of July 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 the Ministry of Finance (KZT) - 21.52 % (20.84 %; 20.63 %);
- short-term domestic GS of the Ministry of Finance and the National Bank (KZT) - 2.77 % (4.17 %; 3.58 %);
- stocks of foreign issuers (foreign currencies) - 5.38 % (3.99 %; 2.99 %);
- corporate bonds of foreign issuers (foreign currencies) - 7.78 % (7.67 %; 8.18 %);
- foreign states' securities - 1.14 % (2.21 %; 1.95 %);
- stocks of Kazakhstan companies - 12.95 % (13.26 %; 13.33 %);
- bonds of Kazakhstan companies - 30.19 % (29.47 %; 29.13 %);
- deposits and deposit certificates in the National bank of Kazakhstan and the second tier banks (KZT) - 12.07 % (13.03 %; 14.15 %)
- deposits and deposit certificates (foreign currencies) - 0.09 % (0 %; 1.30 %);
- refined gold - 3.61 % (3.74 %;2.90 %);
- derivative instruments - 0.1 % (0.1 %; -0.07 %).
Funds on investment accounts and other assets according to data of AFS as of July 1 constituted for 1.77 % (1.52 %; 1.79 %) of the total amount of PA.
There were no significant changes in investment structure of aggregated portfolios, managed by pension funds. Only decreasing of the stake of short- term securities of Ministry of Finance and growth of long-terms draws attention, what can be explained by link of interest rate of the last ones to inflation rate. The growth of foreign issuers` shares stake looks interesting. Some turbulence of local company's securities as well as indefinite forecasts on financial sector is likely to contribute to more diversification with purpose of risks decreasing.
The most significant event for all pension system was recent liberalization rules of pension assets investing. Thus, July 17 the Resolution #80 of AFS Board came into effect, dated May 26, in compliance with witch point 4 was excluded "Rules of conducting activity on investment management of pension assets". This point determined the acute volume of investments at the expense of pension assets in financial instruments with corresponding rating evaluation. Since July 1, 2008this volume was to make not less than 70% from fund's pension assets.
In our opinion, it is rather positive step of regulator under financial crisis conditions. Managers of pension assets will attain freedom on local market, on which not only financial instruments but also issuers haven't corresponding rating evaluations. Considering that the main guiding line for medium companies on local market is investor base of pension funds, we may expect revival of new issuers.
[2008-07-29]