Dynamics of condiional pension unit of Kazakhstani APF

/IRBIS, June 25, 01/ - The Accumulative Pension Funds Regulatory Committee of the Ministry of Labor and Social Protection of Kazakhstan (Committee) provided the agency IRBIS with official cross-reference data on the value of Conditional Pension Unit (CPU) of Accumulative Pension Funds (APF) of the country. The data have been presented as of January 1, 2000, as well as - as of January 1, 2001 and as of the beginning of each following months. The Committee assured the agency that the data on the value of CPU for the beginning of each month would be given to the agency for monthly publications. Earlier, the Committee gave the IRBIS an information on the first deposit reception date for each of the funds. As a result, the agency IRBIS was able to publish these data in sufficient volumes for the objective analysis of the activities of the funds and Pension Assets Management Companies (PAMC). The data are published, since it may be of great interest to all participants of the Kazakhstani pension reforms. -------------------------------------------------------------------------------- Value of Conditional Pension Unit, KZT Brief Date of -------------------------------------------------------------- title of first as of as of as of as of as of as of as of the fund deposit 01.01.00 01.01.01 01.02.01 01.03.01 01.04.01 01.05.01 01.06.01 -------- -------- -------- -------- -------- -------- -------- -------- -------- Umit 13.03.98 173.5710 223.2672 226.3982 229.9630 232.6271 237.3597 239.6536 VTF 20.03.98 182.9522 218.7678 221.3633 222.4567 225.7322 228.0032 231.7094 Kunaev 24.03.98 170.7256 203.9650 207.2734 209.2042 211.3250 214.0070 216.9111 HPF 22.03.98 195.2357 230.9045 233.9436 236.0265 238.6126 240.6310 246.5243 Kazak- 28.04.98 184.1600 216.0900 218.4800 223.0980 225.4200 228.3772 231.0500 hstan HBK 24.02.98 194.0826 228.1016 233.1385 236.1349 239.1090 240.9327 243.2957 Kazak- 19.04.98 197.0187 233.7056 237.2708 239.6005 242.4339 245.2454 248.0152 hmys Ular 20.04.98 195.6888 229.3204 232.5545 234.9131 237.4117 240.1697 242.7511 NGD 07.06.98 187.8878 219.8317 222.5801 230.7484 232.6904 234.6169 236.9433 Kurmet 01.01.99 156.9103 182.0120 183.9377 188.1735 190.5877 192.7202 194.7845 AAKMG 03.03.99 136.5917 158.2792 160.7550 162.1954 164.0497 165.5982 168.2005 SENIM 20.07.99 104.5829 122.8127 124.4444 125.9753 127.1451 128.2292 129.9596 Korgau 01.12.99 100.1700 113.9032 115.5681 116.9873 118.7919 119.7676 121.0255 PMK 07.04.01 - - - - - 100.2256 100.4909 SAPF 15.01.98 174.3215 201.5421 203.8810 206.0117 207.7858 209.5262 211.8341 FTUK NA 127.6770 - - - - - - -------------------------------------------------------------------------------- For simplicity, following abbreviations have been used in the table: Umit - APF Umit CJSC; VTF - PAPF Valut-tranzit fund CJSC; Kunaev - PAPFOT after Kunaev CJSC; HPF - OAPF Halyk Pension Fund CJSC; Kazakhstan - PAPF Kazakhstan CJSC; HBK - APF Halyk Bank of Kazakhstan; Kazakhmys - APF Kazakhmys CJSC; Ular - OAPF Ular CJSC; NGD - PAPF NefteGas-Dem; Kurmet - POAPF Kurmet; AAKMG - APF ABN AMRO - KaspiiMunaiGas CJSC; SENIM - OAPF SENIM CJSC; Korgau - APF Korgau CJSC; PMK - KAPF Philip Morris Kazakhstan CJSC; SAPF - State Accumulative Pension Fund CJSC; FTUK - OAPF Federation of Trade Unions of Kazakhstan CJSC; NA - (not available) data not presented; "-" - no data due to the inactivity of the fund. Comments of the Committee: - OAPF Federation of Trade Unions of Kazakhstan CJSC was reorganized on September 29, 2000 by merging with APF Umit CJSC. - APF KaspiiMunaiGas CJSC was reorganized on February 16, 2001 by merging with APF ABN-AMRO CJSC with subsequent change in the title of the latter into APF ABN AMRO - KaspiiMunaiGas CJSC. General license #0000018 to engage in the activities aimed at attracting pension deposits and making pension payments was obtained by KAPF Philip Morris Kazakhstan CJSC on February 1, 2001. CPU - is one of the main indicators of a fund's profitability. When APF is first established, it is equal to KZT100. It is a beginning value of CPU for any APF. Later, after making certain profitable investments by the fund, all accrued investment income is divided into the number of CPU of the fund and in compliance with approved calculation methods, it increases its value. Therefore, each depositor of the fund, who owns a certain amount of CPU, receives his/her proportional investment income growth on his/her pension deposits. Naturally, effectiveness of the APF activities (to be exact those of PAMC), should be assessed not on the basis of CPU absolute value, but its growth rate, since in absolute value of the CPU depends on the life of the fund. CPU dynamics reflects investment strategy of the fund and that of the company, which manages its assets. Therefore, fast growth of CPU on a certain time frame does not mean the fund is working effectively. For example, now profits can be fixed on some instruments, which had been bought some time in the past at a high return level. By selling these securities now, high CPU dynamics can be obtained. At the same time, current returns of the securities on the market are much lower than they had been before. And the PAMC will have to invest the money it receives from selling high-return securities into these securities again, thus, predetermining a low growth rate of CPU in the future. Volume of assets of the fund is also important. The greater it is, the more effectively the fund can hedge against investment risks. Following is the data, which have been published by IRBIS before, that characterize the volumes of assets of each fund as of June 1, 01 (mln KZT, unless otherwise indicated), presented to the agency by the National Securities Commission of Kazakhstan (NSC), as well as - distribution of the assets of APF among PAMC (SAPF manages its assets by itself). The same abbreviations, used in previous table, has been used in this table. ------------------------------------------------------------------------- Total assets ---------- --------------- Net pension Proportion in Title of PAMC / APF assets Volume total volume, % Invested ------------------------------------------------------------------------- PAMC ABN AMRO MANAGEMENT CJSC ------------------------------------------------------------------------- PMK 172.39 172.42 0.1 171.47 HPF 2,046.16 2,051.51 1.5 2,047.95 AAKMG 8,594.67 8,610.15 6.2 8,594.46 ----------------------- ----------- ---------- --------------- ---------- Total 10,813.22 10,834.07 7.8 10,813.87 ----------------------- ----------- ---------- --------------- ---------- PAMC JETYSU CJSC ------------------------------------------------------------------------- Ular 11,182.67 11,200.63 8.1 11,177.38 Kazakhmys 5,225.40 5,231.98 3.8 5,184.33 ----------------------- ----------- ---------- --------------- ---------- Total 16,408.08 16,432.61 11.9 16,361.70 ----------------------- ----------- ---------- --------------- ---------- Pension Assets Management Company of Halyk Bank of Kazakhstan CJSC ----------------------- ----------- ---------- --------------- ---------- HBK 28,508.07 28,554.70 20.6 28,394.02 ----------------------- ----------- ---------- --------------- ---------- Total 28,508.07 28,554.70 20.6 28,394.02 ----------------------- ----------- ---------- --------------- ---------- PAMC Ak Nyiet CJSC ----------------------- ----------- ---------- --------------- ---------- Umit 12,012.68 12,051.06 8.7 11,987.47 NGD 2,963.83 2,967.24 2.1 2,945.77 ----------------------- ----------- ---------- --------------- ---------- Total 14,976.51 15,018.30 10.8 14,933.24 ----------------------- ----------- ---------- --------------- ---------- PAMC BTA Asset Management CJSC ------------------------------------------------------------------------- Kazakhstan 3,468.97 3,474.44 2.5 3,469.53 Kurmet 4,631.80 4,632.41 3.3 4,620.79 ----------------------- ----------- ---------- --------------- ---------- Total 8,100.77 8,106.84 5.9 8,090.31 ----------------------- ----------- ---------- --------------- ---------- PPAMC Aktiv-Invest JSCOT ------------------------------------------------------------------------- VTF 2,653.81 2,655.10 1.9 2,608.60 Kunaev 421.30 421.90 0.3 420.72 ----------------------- ----------- ---------- --------------- ---------- Total 3,075.10 3,077.00 2.2 3,029.32 ----------------------- ----------- ---------- --------------- ---------- PAMC BESTINVEST CJSC ------------------------------------------------------------------------- SENIM 6,842.43 6,843.95 4.9 6,842.84 Korgau 1,271.92 1,273.91 0.9 1,273.21 ----------------------- ----------- ---------- --------------- ---------- Total 8,114.35 8,117.87 5.9 8,116.04 ----------------------- ----------- ---------- --------------- ---------- TOTAL of private sector 89,996.11 90,141.39 65.1 89,738.51 ----------------------- ----------- ---------- --------------- ---------- SAPF 48,291.77 48,352.38 34.9 48,006.41 ----------------------- ----------- ---------- --------------- ---------- TOTAL of pension assets 138,287.89 138,493.77 100.0 137,744.92 ------------------------------------------------------------------------- Comments of IRBIS: the agency had not double checked the data presented by the Committee and the NSC, therefore, the agency IRBIS does not assume any liability on the reliability of the data by referring to original sources.