ANALYSIS: According to AFS amount of net pension assets in Kazakhstan as of February 1, 2006 reached $5,148.6 m.

/IRBIS, Sergey Yakovlev, Andrey Tsalyuk, February 23, 06/ - According to data of Agency of the Republic of Kazakhstan for regulation and supervision of financial market and financial organizations (AFS) total amount of net pension assets (PA) in the republic (total pension assets excluding obligations on charged commission interests, accounts payable on pension payments) as of February 1, 2006 reached KZT669,518.9 m. or $5,148.6 m. at the weighted average exchange's rate effective on the mentioned date. Corresponding indicators as of January 1, 2006 - KZT648,580.7 m. or $4,848.5 m. In January, 2005 net assets of accumulative pension funds (APF) grew by 3.23% in tenge and by 6.19% in dollar equivalent. In December, 2005 assets increased by 3.55% in tenge and by 3.80% in dollar equivalent. By the beginning of February, 2006 total amount of PA was KZT672,097.4 m., of them KZT651,980.5 m. were invested. Within January, 2006 there were seven specialized organizations conducting pension assets investment management activity (PAIMO) and 14 APF. Three funds - Accumulative pension fund of Halyk Bank of Kazakhstan JSC, APF SAPF JSC and APF BTA Kazakhstan JSC, which are actually also PAIMO, controlled pension assets independently. Stake of PA, which was controlled by these funds, by the beginning of February of 2006, totaled 53.28% of all PA of the republic (as of January 1 this indicator was 52.74%). The table below presents volumes of assets of each fund (KZT m., unless otherwise indicated) and distribution of APF assets by PAIMO as of February 1, 2006. Figures in parentheses give the same picture as of January 1, 2006. ------------------------------------------------------------------------------ Total assets ------- ------------- Net % of all PA pension of Name of PAIMO / APF assets Volume Kazakhstan Invested ------------------------------------------------------------------------------ PAIMO ABN AMRO Asset Management JSC ------------------------------------------------------------------------------ APF ABN AMRO-KaspiyMunai Gas JSC 46,658 46,716 6.95,(7.07) 46,648 APF Kapital JSC 11,105 11,119 1.65,(1.65) 11,025 ----------------------------------- ------- ------- ------------- -------- Total 57,763 57,835 8.61,(8.72) 57,672 ----------------------------------- ------- ------- ------------- -------- PAIMO Bailyk Asset Management JSC ------------------------------------------------------------------------------ PAPF of open type named after 2,375 2,379 0.35,(0.36) 2,322 Kunayev JSC OAPF SENIM JSC 28,598 28,762 4.28,(4.20) 26,868 APF Korgau JSC 9,886 9,897 1.47,(1.51) 9,502 APF NefteGas-Dem JSC 16,695 16,722 2.49,(2.53) 16,654 ----------------------------------- ------- ------- ------------- -------- Total 57,554 57,760 8.59,(8.60) 55,347 ----------------------------------- ------- ------- ------------- -------- PAIMO Premier Asset Management JSC ------------------------------------------------------------------------------ OAPF Otan JSC 13,009 13,028 1.94,(1.95) 12,972 ----------------------------------- ------- ------- ------------- -------- Total 13,009 13,028 1.94,(1.95) 12,972 ----------------------------------- ------- ------- ------------- -------- PAIMO ALFA-TRUST JSC ------------------------------------------------------------------------------ APF Kazakhmys JSC 16,286 16,313 2.43,(2.47) 15,943 ----------------------------------- ------- ------- ------------- -------- Total 16,286 16,313 2.43,(2.47) 15,943 ----------------------------------- ------- ------- ------------- -------- PAIMO ZHETYSU JSC ------------------------------------------------------------------------------ APF UlarUmit JSC 120,086 120,285 17.90,(18.14) 119,819 ----------------------------------- ------- ------- ------------- -------- Total 120,086 120,285 17.90,(18.14) 119,819 ----------------------------------- ------- ------- ------------- -------- PAIMO Activ-Invest JSC ------------------------------------------------------------------------------ PP Valut-Tranzit Fund JSC 32,761 32,754 4.87,(4.99) 31,459 Total 32,761 32,754 4.87,(4.99) 31,459 ----------------------------------- ------- ------- ------------- -------- PAIMO Nur-Trust JSC ------------------------------------------------------------------------------ OAPF Atameken JSC 16,003 16,058 2.39,(2.39) 15,948 ----------------------------------- ------- ------- ------------- -------- Total 16,003 16,058 2.39,(2.39) 15,948 ----------------------------------- ------- ------- ------------- -------- APF, operating as pension assets management companies independently ----------------------------------- ------- ------- ------------- -------- APF SAPF JSC 127,665 127,899 19.03,(19.45) 122,612 APF BTA Kazakhstan JSC 52,819 53,657 7.98,(7.33) 53,101 APF of Halyk Bank of Kazakhstan JSC 175,572 176,509 26.26,(25.97) 167,108 ----------------------------------- ------- ------- ------------- -------- Total 356,056 358,065 53.28,(52.74) 342,821 ----------------------------------- ------- ------- ------------- -------- TOTAL pension assets 669,519 672,097 100.0 651,980 ------------------------------------------------------------------------------ The biggest APF by the end of January by volume of net PA (in descending order of PA amount): APF Halyk Bank of Kazakhstan JSC, APF SAPF JSC and APF Ular Ymit CJSC. By the volume of managed assets APF Halyk Bank of Kazakhstan JSC is still leading (26.3% of all PA in management). The second place belongs to APF SAPF JSC (19.0%), the third place - PAIMO ZHETYSU JSC (17.9%). The highest assets growth rate (11.23% in tenge) in January was recorded in APF BTA Kazakhstan JSC. In absolute monetary terms the leader is APF Halyk Bank of Kazakhstan JSC by the biggest amount of assets growth. Its assets increased within the month by KZT7,678.6 m. The second place belongs to APF BTA Kazakhstan JSC (growth by KZT6,023.7 m.); the third one - APF UlarUmit JSC (growth by KZT2,329.3 m.). Invested assets by financial instruments as at February 1, 2006 were allocated as follows (figures in parentheses display data for previous two months in reverse chronological order, % are given from full PA): - long-term domestic GS of the Ministry of Finance (KZT) - 22.79% (20.85%; 19.94%); - eurobonds of Kazakhstan sovereign debt (USD) - 1.08% (1.23%; 0.62%); - short-term domestic GS of the Ministry of Finance and the National Bank (KZT) - 6.65% (10.65%; 15.13%); - bonds of domestic municipal authorities of Kazakhstan (USD) - 0.01% (0.01%; 0.01%); - shares of foreign issuers (foreign currencies) - 0.46% (0.62%; 0.63%); - corporate bonds of foreign issuers (foreign currencies) - 2.47% (1.30%; 1.34%); - foreign states securities - 4.78% (4.98%; 4.67%); - securities of international financial organizations (foreign currencies) - 0.56% (0.55%; 0.60%); - Kazakhstan companies' shares - 10.16% (9.22%; 8.14%); - Kazakhstan companies' bonds - 30.22% (30.77%; 31.38%); - deposits and deposit certificates in the National bank of Kazakhstan and second tier banks (KZT) - 17.61% (17.28%; 16.52%); - deposits and deposit certificates (foreign currencies) - 0.00% (0.00%; 0.05%); - refined gold - 0.17% (0.16%; 0.00%); - stakes of Kazakhstan mutual funds - 0.00% (0.00%; 0.00%); - stakes of foreign mutual funds - 0.04% (0.05%; 0.05%). Funds on investment accounts and other assets according to AFS data as of December 1 were 3.00% (2.33%, 0.97%) from total amount of PA. Most interesting tendencies in January on pension funds are concerned with domestic bonds of the Ministry of finance, eurobonds of Kazakhstan sovereign debt, corporate bonds of foreign issuers and shares of Kazakhstan companies. The first tendency is explained by offering of MEOKAM, which are in popular demand of pension funds, despite their low yield. The quick strengthening of tenge against U dollar in this year caused falling of the stake of euronotes of Kazakhstan sovereign debt in pension subjects portfolios. However, the stake of foreign issuers' corporate bonds considerably grew. Analysts of IRBIS assume this occurred due to offering of two-currency international bonds of Merrill Lynch & Co., Inc (USA) of XS0240118017 issue among Kazakhstan APF in the beginning of January. These securities are nominated in US dollars, but they are served in tenge (unless there are events providing other things appear on the market). At that, semi-annual coupon equal to inflation rate in Kazakhstan, fixed by the results of six months (this period "lags behind" the coupon period by there months). Taking into account security's length - 15 years - one can try to raise its attractiveness for PA managers even on the background of the observed at present consolidation of tenge against US dollar. Tendency, deserving the biggest attention, is the grown interest of pension funds in Kazakhstan companies' shares, which in year 2005 and in January of 2006 were rampantly growing in price. According to the analysis made by IRBIS the biggest growth of conventional pension unit (CPU) for the last three and one month was shown by the funds, which had the biggest growth of the stake of shares in their portfolios in the period from December 1, 2005 till February 1, 2006. These funds are APF BTA Kazakhstan JSC, OAPF SENIM JSC and APF UlarUmit JSC. The exclusion here is APF of Halyk Bank of Kazakhstan JSC, stake of shares in its portfolio grew insignificantly in presence of the considerable growth of CPU. Specialists of IRBIS explain this by the record high growth rate of common shares of Halyk savings bank of Kazakhstan JSC on domestic market. And, as it's known, APF of Halyk Bank of Kazakhstan JSC is still one of big shareholders of this bank. Judging on the mentioned things one can conclude that "the price boom", which is observed on Kazakhstan share market, interested pension assets managers, and moreover, was partially caused (at least - was supported) by their actions. Due to participation in this process some funds got a considerable growth of CPU and increased profitability of their assets. [2006-02-23]