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

/IRBIS, Dinara Mukasheva, October 28, 08/ - Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations (AFS) in its scheduled press-release dedicated to the republic's financial market and financial organizations has characterized Kazakhstan accumulative pension system as of October 1, 2008. According to AFS, as of October 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 September of current year, accumulative pension funds were not 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 Indicator October Sept. Jan Oct. 1,08 1,08 1,08 1,07 ------------------------------------------------- --------- ------ ----- ----- The number of individual pension accounts on compulsory pension fees 9,486,211 +0.4 +2.8 +5.8 total sum of pension accumulations (bn. KZT) 1,377.0 -0.1 +14.4 +24.4 Amount of accounts of depositors on voluntary pension fees 41,542 +0.2 +1.6 +2.8 total sum of pension accumulations (m. KZT) 0.9 +1.0 +17.2 +25.2 Amount of accounts of depositors on voluntary professional pension fees 4,019 0 +4.4 +5.0 total sum of pension accumulations (m. KZT) 0.1 -2.8 +12.6 +28.8 Pension savings of depositors (bn. KZT) 1,382.0 -0.1 +14.4 +24.8 Total income of pension fees (bn. KZT) 1,108.6 +2.1 +21.5 +30.9 Total net investment income* 338.0 -6.4 -0.5 +12.1 The sum of pension payments to receivers (bn. KZT) 1.9 -13.6 -87.5 +1.7 ------------------------------------------------- --------- ------ ----- ----- Transfers of pension accumulations to other funds (bn. KZT) 289.4 +3.0 +37.9 +1.5 ------------------------------------------------------------------------------ * from investment of pension assets, distributed for individual pension accounts of investors In total sum of pension savings of depositors (receivers), stake of net investment earning as of October 1, 2008 made 24.46 %, decreasing compared to September of current year by 1.63 basis points. As of October 1, 2008 average weighted coefficients of nominal income on pension assets of accumulative pension funds made: - For 5 year period (September 2003 - September 2008) - 42.19 %. Corrected average weighted coefficient of nominal income - 37.48 % (accumulated inflation level for similar period - 65.73 %); - For 3 year period (September 2005 - September 2008) - 28.41 % (accumulated inflation level for similar period - 42.61 %); - For 12 month period (September 2007 - September 2008) - 5.01 % (inflation level for similar period - 18.20 %). In the third quarter of 2008 AFS demanded 2 written notifications and 2 written liabilities for not following the standards of Kazakhstan republic Legislation on accumulative pension system; also written agreement on mandatory corrective measures fulfillment for elimination of violations and disadvantages ascertained during previous check was made with 1 fund. As of September 1, 2008 one accumulative pension fund is in the process of forced liquidation by the court decision - APF Valut Transit Fund JSC. [2008-10-28]