The expected profitability of investments into the first Kazakhstan open unit fund - 8-10% APR for 3-6 months - Centras Securities JSC

/REUTERS, Almaty, Tatyana Seroshtanova, headline - IRBIS, January 19,05/ - The third unit investment fund has been registered in Kazakhstan, said on Wednesday general director of managing company Eldar Abdrazakov, who hopes for interest of investors, including small, under conditions of deficit of instruments. Centras Securities acts as the managing company of the open fund Kaznacheistvo registered by Financial supervision agency. In November of 2004 there were founded two closed investment unit funds in the republic, which were controlled by Compas company, which was controlled by the investment company Visor. Unlike closed investment unit funds, Kaznacheistvo is the first classic investment fund for a wide range of investors with rather low face value of stake at the initial offering, which is KZT100,000 (about $769), whereas minimum participation for registered before closed funds is $100,000. As Abdrazakov says, company does not expect a considerable growth of investments in this year, but hopes to get in it in the next year already. "We think this year will be spent for liquidation of population's ignorance. We think people will be inert. Unfortunately we will have to make very much efforts. Till the end of the year we expect $15-20 m. We expect the next year there will be not arithmetical but geometrical growth", - said Abdrazakov. The inactive stock market of Kazakhstan and "the narrow" money market as well as the considerable volume of deposits in the banking system - over $11 bn., make unsatisfied participants seek for an alternative for the existing poor instruments for investments. Among them experts call foundation of various investment unit funds, number of which in the year 2005 may reach 25. "Although Kazakhstan is developing much, economics remains small. Although GDP volumes are $30 bn., we can't compare them with $10-trillion US economics", - сказал Абдразаков. INVESTMENTS OF FUND Fund intends to invest accumulated funds into debt instruments on domestic and international markets. The expected profitability of deposits from three to six months will be 8-10% APR. Share market in Kazakhstan is almost inactive, and most part of bonds, as a rule, in pension fund's ownership until maturity. Financial supervision agency last year permitted to invest funds into foreign unit funds with high rating and reexamined some other investing limits. "Absence of money market dictates that short-term rates in Kazakhstan is today higher than short-term rates on foreign market", - said Abdrazakov. As he says, in the nearest future due to the exchange legislation and liberalization of Kazakhstan market managing companies and investment funds will have the possibility to invest funds into foreign assets without one- time licenses of the National Bank. Besides, they have a big tax preference for working with physical persons. Custodian bank of Kaznacheistvo bank is ATF-bank, which is one of five biggest banks of Kazakhstan. Central securities depository CJSC is the independent registrar maintaining the register of stake holders. ($1=KZT129.98) [2005-01-19]