ANALYSIS: According to AFS amount of net pension assets in Kazakhstan as of March 1, 2006 reached $5,328.0 m.

/IRBIS, Sergey Yakovlev, Andrey Tsalyuk, March 20, 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 March 1, 2006 reached KZT693,550.9 m. or $5,328.0 m. at the weighted average exchange's rate effective on the mentioned date. Corresponding indicators as of February 1, 2006 - KZT669,518.9 m. or $5,148.6 m. In February 2006 net assets of accumulative pension funds (APF) grew by 3.59% in tenge and by 3.49% in dollar equivalent. In January assets increased by 3.43% in tenge and by 3.67% in dollar equivalent. By the beginning of March 2006 total amount of PA was KZT696,704.1 m., of them KZT667,674.7 m. were invested. Within February 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 March 2006, totaled 53.17% of all PA of the republic (as of February 1 this indicator was 53.28%). The table below presents volumes of assets of each fund (KZT m., unless otherwise indicated) and distribution of APF assets by PAIMO as of March 1, 2006. Figures in parentheses give the same picture as of February 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 47,497 47,549 6.82,(6.95) 47,504 APF Capital JSC 11,500 11,515 1.65,(1.65) 11,455 ----------------------------------- ------- ------- ------------- -------- Total 58,997 59,064 8.48,(8.61) 58,958 ----------------------------------- ------- ------- ------------- -------- PAIMO Bailyk Asset Management JSC -------------------------------------------------------------------------- PAPF of open type named after 2,437 2,442 0.35,(0.35) 2,393 Kunayev JSC OAPF SENIM JSC 29,521 29,636 4.25,(4.28) 27,104 APF Korgau JSC 10,149 10,163 1.46,(1.47) 8,603 APF NefteGas-Dem JSC 17,158 17,203 2.47,(2.49) 16,278 ----------------------------------- ------- ------- ------------- -------- Total 59,266 59,444 8.53,(8.59) 54,378 ----------------------------------- ------- ------- ------------- -------- PAIMO Premier Asset Management JSC -------------------------------------------------------------------------- OAPF Otan JSC 13,469 13,510 1.94,(1.94) 13,145 ----------------------------------- ------- ------- ------------- -------- Total 13,469 13,510 1.94,(1.94) 13,145 ----------------------------------- ------- ------- ------------- -------- PAIMO ALFA-TRUST JSC -------------------------------------------------------------------------- APF Kazakhmys JSC 16,548 16,566 2.38,(2.43) 15,754 ----------------------------------- ------- ------- ------------- -------- Total 16,548 16,566 2.38,(2.43) 15,754 ----------------------------------- ------- ------- ------------- -------- PAIMO ZHETYSU JSC -------------------------------------------------------------------------- APF UlarUmit JSC 126,525 127,302 18.27,(17.90) 122,330 ----------------------------------- ------- ------- ------------- -------- Total 126,525 127,302 18.27,(17.90) 122,330 ----------------------------------- ------- ------- ------------- -------- PAIMO Activ-Invest JSC -------------------------------------------------------------------------- PP Valut-Tranzit Fund JSC 33,877 33,945 4.87,(4.87) 32,091 Total 33,877 33,945 4.87,(4.87) 32,091 ----------------------------------- ------- ------- ------------- -------- PAIMO Nur-Trust JSC -------------------------------------------------------------------------- OAPF Atameken JSC 16,421 16,444 2.36,(2.39) 16,029 ----------------------------------- ------- ------- ------------- -------- Total 16,421 16,444 2.36,(2.39) 16,029 ----------------------------------- ------- ------- ------------- -------- APF, operating as pension assets management companies independently ----------------------------------- ------- ------- ------------- -------- APF SAPF JSC 128,845 128,888 18,50,(19,03) 124,189 APF BTA Kazakhstan JSC 56,851 57,488 8,25,(7,98) 56,917 APF of Halyk Bank of Kazakhstan JSC 182,752 184,051 26,42,(26,26) 173,884 ----------------------------------- ------- ------- ------------- -------- Total 368,448 370,427 53,17,(53,28) 354,990 ----------------------------------- ------- ------- ------------- -------- TOTAL pension assets 693,551 696,704 100,0 667,675 -------------------------------------------------------------------------- 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 (26.4% of all PA in management). The second place belongs to APF SAPF JSC (18.5%), the third place - PAIMO ZHETYSU JSC (18.3%). The highest assets growth rate (7.14% in tenge) in February 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 KZT7,541.8 m. The second place on this index - APF UlarUmit JSC (growth by KZT7,017.8 m.); the third one - APF APF BTA Kazakhstan JSC (growth by KZT3,831.4 m.). Invested assets by financial instruments as at March 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) - 21.14% (22.79%; 20.85%); - eurobonds of Kazakhstan sovereign debt (USD) - 1.46% (1.08%; 1.23%); - short-term domestic GS of the Ministry of Finance and the National Bank (KZT) - 5.41% (6.65%; 10.65%); - bonds of domestic municipal authorities of Kazakhstan (USD) - 0.01% (0.01%; 0.01%); - shares of foreign issuers (foreign currencies) - 0.44% (0.46%; 0.62%); - corporate bonds of foreign issuers (foreign currencies) - 4.40% (2.47%; 1.30%); - foreign states securities - 3.84% (4.78%; 4.98%); - securities of international financial organizations (foreign currencies) - 0.53% (0.56%; 0.55%); - Kazakhstan companies' shares - 11.96% (10.16%; 9.22%); - Kazakhstan companies' bonds - 29.86% (30.22%; 30.77%); - deposits and deposit certificates in the National bank of Kazakhstan and second tier banks (KZT) - 16.53% (17.61%; 17.28%); - deposits and deposit certificates (foreign currencies) - 0.00% (0.00%; 0.05%); - refined gold - 0.21% (0.17%; 0.16%); - stakes of Kazakhstan mutual funds - 0.00% (0.00%; 0.00%); - stakes of foreign mutual funds - 0.04% (0.04%; 0.05%). Funds on investment accounts and other assets according to AFS data as of March 1 were 4.17% (3.00%, 2.33%) from total amount of PA. Most marked tendencies of February in change of structure of aggregated pension portfolio concern instruments of three groups. Judging by above data, managing PA are less interested in notes of the National Bank, stake of which in portfolios of "pensioners" rapidly drop. These securities are characterized with very low yield. However such positive tendency may be temporary, whereas increase of notes issue volume now easily forecasted on the background of events, happening in internal currency market of the republic. Growth of stake of shares of Kazakhstan companies looks interesting. To all appearances, less funds stays in the side from fact of "price boom" in Kazakhstan share market. Exactly stake instruments are able today considerably to increase efficiency of PA management, though risks are very considerable, than in work with debt instruments. Surprise of February we may call growth of stake in aggregated pension portfolio of corporate bonds of foreign issuers. But this- at first glance. IRBIS specialists explain this fact by floatation in February by subscription among Kazakhstan pension funds of obligations of JPMorgan Chase Bank, National Association (Columbus, state Ohio) XS0244509963 issue. The above bonds are issued for the amount KZT13.2 bn. on February 14, 2006 with redemption on February 14, 2016. They are denominated in Kazakhstan tenge and has semiannual coupon, rate of which is "attached" to inflation level in the republic of Kazakhstan. [2006-03-20]