Currency assets assisted growth of profitability of OUIT Kaznacheystvo (Kazakhstan) in the second quarter to 13.78% APR

/IRBIS, Assel Omarova, August 31, 05/ - "In a view of tenge weakening currency structure was higher during reporting period to 26.98% from the whole value of portfolio, what assisted increase of portfolio profitability", - investment report for the second quarter of the current year of Open unit investment trust (OUIT) "Kaznacheystvo" (Almaty), whose controlling company is Centras Securities JSC (Almaty) says. This report was submitted by managing company to IRBIS agency last Saturday. As per report in the second quarter of 2005 trust's assets yield reached 13.78% APR, and in June - 25.91% APR. Trust started its activity on January 21, 2005 with share value KZT100.0 th. As on June 30 of the current year share price grew to KZT105,437.80, while as on the end of the 1st quarter it equaled to KZT101,935.59. From the beginning of activity trust's yield is estimated in 12.40% APR. For confirmation of assets management efficiency Centras Securities JSC gives comparable data. For example, average yield on six-month tenge deposits of five leading Kazakhstan banks in the second quarter was 6.00% APR (in the first quarter was 6.00% APR), weighted average nominal income coefficient on pension assets of Kazakhstan accumulative pension funds (APF) for the 1st quarter 2005 - 9.75% APR, yield of Kazakhstan GS with 12 month term till maturity - 2.47% APR (in the first quarter - 3.16%). Structure of investment portfolio of OUIT Kaznacheystvo as of 30.06.05 was as follows: funds - 0.30%; bank deposits - 46.02%; corporate bonds - 11.93%; shares - 15.05%; money market instruments - 26.70%. Assets were represented by domestic currency (73.02%), as well as by foreign (26.98%). We will remind that in the 1st quarter of the current year all assets were represented by domestic currency: funds - 16.02%; GS - 6.71%; bank deposits - 49.05%; reverse repo - 28.21%. Value of net assets of Стоимость OUIT Kaznacheystvo by estimation of trust as on June 30, 2005 was KZT90.505 m. According to the opinion, stated in investment report of OUIT Kaznacheystvo, even on the background of record high prices for oil in the 2nd quarter dollar assets continued to be attractive. Tenge devaluation during this period was 8.05%, this was connected from the trust's point of view with the following reasons: - general strengthening of US dollar relative to other currencies (EUR, GBP, JPY, RUB and others); - absence of attractive instruments in tenge; - low yield of Kazakhstan GS, nominated in tenge, with 12 months till maturity (2.47% APR) in comparison with similar securities of USA Government (3.27% APR); - purchase by pension funds of foreign currency (as per some estimates $750-800 m. during last two months). OUIT Kaznacheystvo also considers, that currency instruments of some Kazakhstan issuers in comparison with instruments, nominated in tenge, were unappreciated. Trust relates to them bonds of Halyk savings bank of Kazakhstan JSC and short term promissory notes of first-rate issuers (Kazakhtelecom JSC, Vostok-Cement OJSC and others), fair price of which "much higher" of the current value. [2005-08-31]