ANALYSIS: According to AFS, Kazakhstan net pension assets reach $11,437.3 m. as of August 1, 2008

/IRBIS, Vitaliy Tomskiy, August 19, 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 August 1, 2008 reached KZT1,374,423.4 m. or equivalent of $11,437.3 m. at the weighted average exchange rate effective on the mentioned date. Corresponding indicator as of July 1, 2008 - KZT1,366,435.5 m. or $11,316.2 m. In July 2008 net assets of accumulative pension funds (APF) grew by 0.58 % in tenge and by 1.07 % in dollar terms. In June 2008 assets increased by 1.46 % in tenge and by 1.31 % in dollar equivalent. As of the beginning of August 2008, the total sum of pension assets made KZT1,373,348.5 m., of which KZT1,361,691.4 were invested. During July 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 AMANAT- KAZAKHSTAN JSC (former name is 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 73.4 % out of the entire amount of PA of the republic, by the beginning of August 2008 (as of July 1, this indicator was 73.1 %). The table below presents volumes of assets of each fund (KZT m., unless otherwise indicated) and distribution of APF assets by PAIMO as of August 1, 2008. Figures in parentheses give the same picture as of July 1, 2008. ----------------------------------------------------------------------------- Total assets Net % of all PA pension of Name of PAIMO / APF assets Trend, % Volume Kazakhstan Invested ----------------------------------------------------------------------------- PAIMO GRANTUM Asset Management JSC ----------------------------------------------------------------------------- GRANTUM APF JSC 81,483 +0.70 81,501 5.93 (5.93) 80,973 ------------------------ --------- -------- --------- ------------- --------- Total 81,483 +0.70 81,501 5.93 (5.93) 80,973 ------------------------ --------- -------- --------- ------------- --------- PAIMO ZHETYSU JSC ----------------------------------------------------------------------------- APF UlarUmit JSC 225,945 -1.60 224,126 16.32 (16.73) 221,903 APF Korgau JSC 20,775 +1.95 20,803 1.51 (1.49) 20,215 ------------------------ --------- -------- --------- ------------- --------- Total 246,720 -1.31 244,930 17.83 (18.22) 242,118 ------------------------ --------- -------- --------- ------------- --------- PAIMO Premier Asset Management JSC ----------------------------------------------------------------------------- APF Respublika JSC 5,609 +11.37 5,621 0.41 (0.37) 5,598 ------------------------ --------- -------- --------- ------------- --------- Total 5,609 +11.37 5,621 0.41 (0.37) 5,598 ------------------------ --------- -------- --------- ------------- --------- PAIMO Nur-Trust JSC ----------------------------------------------------------------------------- OAPF Atameken JSC 33,306 +1.68 33,365 2.43 (2.40) 33,127 ------------------------ --------- -------- --------- ------------- --------- Total 33,306 +1.68 33,365 2.43 (2.40) 33,127 ------------------------ --------- -------- --------- ------------- --------- APF, operating as pension assets management companies independently ----------------------------------------------------------------------------- APF AMANAT-KAZAKHSTAN JSC* 29,159 +0.81 29,215 2.13 (2.12) 29,035 APF SENIM JSC 44,243 +28.55 44,356 3.23 (3.20) 44,344 APF NefteGas-Dem JSC 35,000 -19.66 35,024 2.55 (2.53) 34,854 APF SAPF JSC 224,000 -0.12 223,772 16.29 (16.42) 221,922 APF SB JSC Bank TuranAlem BTA Kazakhstan JSC 159,689 +3.32 160,048 11.65 (11.33) 158,604 APF of Halyk Bank of Kazakhstan JSC 404,643 +0.14 404,894 29.48 (29.57) 401,964 APF Kazakhmys 27,822 +0.09 27,806 2.02 (2.04) 27,544 OAPF Otan JSC 37,419 +2.61 37,435 2.73 (2.67) 36,318 JSC APF Capital JSC 45,330 +3.81 45,381 3.30 (3.20) 45,290 ------------------------ --------- -------- --------- ------------- --------- Total 1,007,305 +0.10 1,007,931 73.39 (73.08) 999,876 ------------------------ --------- -------- --------- ------------- --------- TOTAL pension assets 1,374,423 +0.58 1,373,348 100.0 1,361,691 ----------------------------------------------------------------------------- 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 (29.48 % of all PA in management). The second place belongs to APF Ular Umit JSC (16.32 %); the third place APF SAPF JSC - (16.29 %). The highest asset growth rate (11.30 % in tenge) in July was recorded in APF REPUBLIC JSC. In absolute monetary terms on the biggest amount of asset growth the leader is OAPF SENIM JSC to (growth by KZT9,790.9 m.). The second place by this indicator belongs to APF DB JSC Bank TuranAlem BTA Kazakhstan JSC. Its assets have grown during the month by KZT5,066.1 m., the third place belongs to APF Capital JSC (growth by KZT1,630.3 m.). Decreasing of pension assets was fixed at APF NefteGas-Dem JSC (by KZT8, 698.7 m.), for a second month in row at APF Ular Umit JSC (by KZT4,647.0 m.) and at APF SAPF JSC (by KZT731.5 m.). Invested assets by financial instruments as of August 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) - 21.47 % (21.52 %; 20.81 %); - short-term domestic GS of the Ministry of Finance and the National Bank (KZT) - 3.85 % (2.77 %; 4.17 %); - stocks of foreign issuers (foreign currencies) - 5.56 % (5.38 %; 3.99 %); - corporate bonds of foreign issuers (foreign currencies) - 8.48 % (7.78 %; 7.67 %); - foreign states' securities - 0.15 % (1.14 %; 2.21 %); - stocks of Kazakhstan companies - 12.38 % (12.95 %; 13.26 %); - bonds of Kazakhstan companies - 30.67 % (30.19 %; 29.47 %); - deposits and deposit certificates in the National bank of Kazakhstan and the second tier banks (KZT) - 12.28 % (12.07 %; 13.03 %) - deposits and deposit certificates (foreign currencies) - 0 % (0.09 %; 0 %); - refined gold - 4.22 % (3.61 %;3.74 %); - derivative instruments - 0.09 % (0.1 %; -0.1 %). Funds on investment accounts and other assets according to data of AFS as of August 1 constituted for 0.85 % (1.77 %; 1.52 %) of the total amount of PA. In July Kazakhstan security market, especially equity instruments sector was under storm. Decreasing of KASE share index last month turned to confidant falling. As a result, by July 31 index fell by 14 % relative to year beginning and more than 10 % relative to July 1. The reasons of such considerable falling were the same. High prices on energy resources and foodstuff "attracted" significant investor base from financial to primary markets. Moreover, the range of debts writing-off of major investments banks all over the world, especially USA as well as several fore-bankruptcy of mortgage and insurance companies not optimized investors with financial institutes equity securities worldwide. Emerging markets countries were the one who mostly experienced this process. The process of capital withdrawal and reorientation of investments downgraded companies` securities of these countries. Kazakhstan was not the exception. Under current conditions, the choice of best investment portfolio for pension funds as a locomotive of internal base is rather difficult task. As a result, we observe gradual decreasing of shares` stake of domestic economy subject in aggregated portfolio of pension funds from one hand, and increasing of stake of short-term securities of state loan on the other hand. We positively react on growth of short-term instruments` stake, as it is the most suitable decision under falling market conditions. [2008-08-19]