/IRBIS, Andrey Tsalyuk, February 7, 05/ - By the resolution of the Board of
Kazakhstan agency or financial market and financial organizations
regulation and supervision (FSA) "About inclusion of changes and
additions in the resolution of the Board of the National Bank of
Kazakhstan dated July 29 of 2003 264 "About confirmation of the Rules
of conducting activity on pension assets investment management"
dated December 27 of 2004 #382 (Resolution), which was registered in the
Ministry of justice of Kazakhstan on January 28 of 2005 under the number
3402, FSA has considerably changed limits of investing pension assets of
Kazakhstan accumulative pension funds (APF).
The resolution takes effect after 14 since the day of state registration in the
Ministry of justice of Kazakhstan (since February 12 - IRBIS).
The resolution has prepared base for the possibility to purchase agent
bonds for pension assets (PA) of APF.
This, securities issued on the security of the Republic of Kazakhstan have
been equated with government securities of Kazakhstan (including securities
issued in compliance with other states' legislations), excluding securities
issued by domestic executive bodies. Henceforth there will be the single limit
on all these securities - no less than 25% of total volume of PA (including
current volume of investments and rest of money on investment accounts of
a separate APF in a custodian by deal making date).
In much the same way securities issued on the security of Development
Bank of Kazakhstan JSC have been equated to its bonds. The acceptable
limit of PA investing has not changed - no more than 15%.
The considerable changes concerned terms of PA investing into deposits
in the National Bank of Kazakhstan Казахстан, and also in second tier
banks. Investment limit has been increased from 15% to 20%, and period of
investing PA and own assets of APF into bank deposits has been increased
from one year to three years. So, Kazakhstan banks now can considerably
prolong the base of funding due to borrowing pension money.
More considerable changes of limits concern corporate securities (CS).
The resolution says APF can invest up to 50% of PA not only into securities
of Kazakhstan organizations issued in compliance with Kazakhstan's and
other states' legislation in case of their inclusion into trade organizer's "A"
listing category, like it was before. The list of investments with this limit
has been expanded due to:
- shares of Kazakhstan organizations, which have no lower than "BB"
rating (by classification of Standard & Poor's and Fitch) or "Ba2" (by
classification of Moody's Investors Service) or "A" rating by the national
scale of Standard & Poor's, circulating on organized markets of foreign
states or Kazakhstan;
- debt securities, which have no lower than "BB" rating (by classification
of Standard & Poor's and Fitch) or "Ba2" (by classification of Moody's
Investors Service) or "A" rating by the national scale of Standard &
Poor's, circulating on organized markets of foreign states or Kazakhstan.
At that, in all probability, FSA meant rating "kzA" by the national scale of
Standard & Poor's.
It's obvious that expansion of the list of CS, into which up to half of PA can
be invested, as well as other changes and additions set in effect by the
Resolution, considerably expand investing abilities of APF.
For example, innovations let funds invest PA into Kazakhstan companies'
shares having corresponding rating, but which have not passed listing
procedure at Kazakhstan stock exchange (KASE), but which have just been
admitted to circulation in KASE's "Non-listing securities" sector, or traded on
foreign stock exchange's with any admission level. As the Resolution runs,
innovations will let invest PA into bonds, for example, of Russian companies,
which have no lower than "BB" rating (by classification of Standard & Poor's
and Fitch) or "Ba2" (by classification of Moody's Investors Service) if these
bonds will be circulating on one of stock exchanges (it doesn't matter on
which one and by which admission level).
The Resolution does not apply to other limits of PA investing.
The text of the Resolution is available at
http://www.kase.kz/mix/post_382.pdf
[2005-02-07]