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

/IRBIS, Natalya Vaguina, December 26, 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 December 1, 2008. According to AFS, as of December 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 November 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 December Nov. Jan Dec. 1,08 1,08 1,08 1,07 ------------------------------------------------- --------- ------ ----- ----- The number of individual pension accounts on compulsory pension fees 9,565,955 +0.3 +3.7 +4.2 total sum of pension accumulations (bn. KZT) 1,373.4 +2.6 +14.1 +18.4 Amount of accounts of depositors on voluntary pension fees 41,624 +0.1 +1.8 +2.2 total sum of pension accumulations (m. KZT) 953.2 +2.2 +18.7 +22.1 Amount of accounts of depositors on voluntary professional pension fees 4,034 +0.25 +4.8 +5.6 total sum of pension accumulations (m. KZT) 54.8 +5.2 +4.4 +9.6 Pension savings of depositors (bn. KZT) 1,378.4 +2.6 +14.1 +18.4 Total income of pension fees (bn. KZT) 1,156.9 +2.1 +26.8 +30.3 Total net investment income* 290.4 +4.9 -14.5 -9.1 The sum of pension payments to receivers (bn. KZT) 2.1 -4.5 -86.2 +1.6 Transfers of pension accumulations to other funds (bn. KZT) 310.1 +3.6 +47.8 +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 December 1, 2008 made 21.07 %, increasing compared to November of current year by 0.47 interest points. As of December 1, 2008 average weighted coefficients of nominal income on pension assets of accumulative pension funds made: - For 5 year period (November 2003 - November 2008) - 36.18 %. Corrected average weighted coefficient of nominal income - 29.77 % (accumulated inflation level for similar period - 62.76 %); - For 3 year period (November 2005 - November 2008) - 23.05 % (accumulated inflation level for similar period - 41.76 %); - For 12 month period (November 2007 - November 2008) - (-0.21 %) (inflation level for similar period - 11.30 %). In November 2008 AFS demanded 3 written liabilities and 3 written directions for not following the standards of Kazakhstan republic Legislation on accumulative pension system. As of December 1, 2008 one accumulative pension fund is in the process of forced liquidation by the court decision - APF Valut Transit Fund JSC. In December 2008 the Board of the Agency adopted the range of resolutions on regulating the activity of accumulative pension funds: - "On including changes into the Resolution # 80 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated March 25, 2006 "On establishing the Rules on voluntary liquidation of accumulative pension funds"; - "On including changes and additions into the Resolution # 6 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated January 9, 2006 "On establishing the Rules on the purpose and functions of provisional administration (provisional administrator) of the bank, insurance (reinsurance) organization and accumulative pension fund"; - "On establishing the Rules on sanctions to the persons, which are under the main participants and the main participants of open accumulative pension fund"; - "On including changes and additions into the Resolution # 64 of the Board of the Agency of Republic of Kazakhstan on Regulation and Supervision of Financial Market and Financial Organizations, dated February 25, 2006 "On establishing Rules on granting the license to accumulative pension fund for creating or purchasing the daughter organization and the license for significant share in the authorized capital of legal entities". [2008-12-26]