NSC OF KAZAKHSTAN HAS GRANTED THE DATA ABOUT PENSION ASSETS INCOMES, INCLUDING SAPF

/IRBIS, Oct.20, 99/ - The National Securities Commission of Kazakhstan (NSC) has granted to IRBIS for distribution the unique (never published earlier) data concerning the incomes of pension assets (PA) of the republic. An effective yield of assets expressed in APR and calculated with a accumulate result. The account is carried out with allowance for periods of pension assets management by this or that company, and also for changes of tenge rate in relation to US dollar, as the significant share of assets is enclosed in securities, which are denominated in dollar or in devaluation indexed securities. Simple speaking, the investor of the pension fund, which will decide to receive the assets in tenge (and thereby "to fix" the profit) will receive the indicated yield. The data given NSC are resulted below (in APR). Name of I quarter - II quarter - III quarter - PAMC and APF 1999 1999 1999 ---------------------------- ----------- ------------ -------------- State Accumulate Pension Fund (SAP) 19.68 116.48 67.74 ---------------------------- ----------- ------------ -------------- HSBK pension assets management company ---------------------------- ----------- ------------ -------------- Fund of Halyk Bank 22.88 113.04 87.58 SENIM *6.55 ---------------------------- ----------- ------------ -------------- Zhetysu company Ular 29.92 117.69 91.49 Kazakhmys 28.92 118.49 92.94 ---------------------------- ----------- ------------ -------------- ABN AMRO Asset Management Peoples pension fund 24.84 110.48 86.04 NefteGas-DEM 24.62 110.92 85.99 Kunaev Fund 22.07 81.12 64.85 Zhardem 13.43 KaspyMunayGaz 25.43 105.05 82.41 ABN AMRO Fund 92.99 59.11 Fund of trade unions federation 38.82 30.18 ---------------------------- ----------- ------------ -------------- Ak niet company Kazakhstan 26.74 99.14 **78.88 UMIT 23.81 97.78 77.16 ---------------------------- ----------- ------------ -------------- Activ - Invest company Valut - transit Fund 21.08 ***65.44 ***48.13 ---------------------------- ----------- ------------ -------------- BTA Asset Management company Kurmet 10.22 83.16 66.33 Valut - transit Fund ***20.13 ***17.41 Kazakhstan **83.80 ---------------------------- ----------- ------------ -------------- * Pension assets of APF SENIM are under management of PAMS NBK since August 02, 1999. ** Pension assets of APF Kazakhstan were under management of PAMC Ak niet till September 26, 1999 then they were transferred into management of PAMC BTA Asset Management *** Pension assets of Closed JSC NNP Valut-Tranzit Fund were transferred into management PAMC BTA Asset Management on May 17 and were transferred back to Closed JSC NPAMC Aktiv-Invest on September 19, 1999. By the given data, the indisputable leader in the efficiency is PAMC Zhetysu, in spite pension assets (PA) under its management less than assets of PAMC HSBK, which is the second. According to NSC, sum of net PA (the sum of PA minus the charged compensations and accounts payable) PAMC Zhetysu on Oct.01, 99 has made 5.293 billion tenges (22.1% from all private pension funds). The same parameter of PAMC HSBK is 9.602 billion tenges (40.1%). The styles of these companies are united by preference of devaluation indexed or hard currency toolkit. But it is not all. By dynamics of the parameters shown, these companies are capable operatively and effectively to react to change of tenge devaluation rate, therefore these changes do not affect the yield potential of portfolios. These data evidently illustrate "advantages" of the investments into SAPF. But at that it is necessary to remember, that under the existing legislation, SAPF has much smaller freedom in choice of financial tools. According to NSC the sum of net PA on October 01, 1999 has made 56,237.3 million tenges or $397.1 million at the current average weighted market rate. The share of SAPF assets has made 57.4%. Total six PAMC and 14 non-state and one state APF worked in country.