Investment portfolios of pension assets managed by the NBRK and IPM as of July 1, 2024
UAPF JSC (hereinafter referred to as UAPF) presents a report on the management of pension assets by the National Bank of the Republic of Kazakhstan (hereinafter referred to as NBRK) and investment portfolio managers (hereinafter referred to as IPM) on the website enpf.kz in the section “Indicators – Investment activities”.
The total volume of pension assets[1] as of July 1, 2024 amounted to more than KZT19,988.59 bln. As of July 1, 2024, pension assets (hereinafter referred to as PA) of the UAPF, which are in trust management of the NBRK, formed through compulsory pension contributions (hereinafter referred to as CPC), compulsory occupational pension contributions (hereinafter referred to as COPC), voluntary pension contributions (hereinafter referred to as VPC) amounted to KZT19,838.39 bln[2]. The volume of pension assets of the NBRK, formed at the expense of employer compulsory pension contributions (hereinafter referred to as ECPC PA), which are in trust management of the NBRK, is KZT98 bln.
Pension assets managed by IPM amounted to about KZT52.2 bln.
Investment portfolio of pension assets managed by the NBRK
The main directions for investing pension assets by the NBRK, formed at the expense of CPC, COPC, VPC, as of July 1, 2024 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan – 44.34%, bonds of quasi-public companies – 9.91%, bonds of second-tier banks of the Republic of Kazakhstan – 4.08%, government securities of foreign countries – 3.73%, shares and depositary receipts of issuers of the Republic of Kazakhstan – 1.89%, microfinance organizations – 1.73%.
The investment portfolio by currencies in which financial instruments purchased through CPC, COPC, VPC are denominated, as of July 1, 2024, looks like this: investments in national currency – 63.41%, in US dollars – 36.58% portfolio of pension assets.
From the analysis of the structure of income received, it follows that income in the form of remuneration on securities, including on placed deposits and reverse repo operations and from market revaluation of securities, amounted to KZT775.76 bln, for assets under external management – KZT357.44 bln, from revaluation of foreign currency – KZT148.36 bln, other income – KZT1.69 bln. Losses from market revaluation of securities amounted to KZT49.79 bln.
Due to the diversification of the investment portfolio of pension assets by instruments, industries and currencies, the total income for January-June 2024 is positive.
As a result of investment activities, as well as due to the volatility of foreign exchange rates and changes in the market value of financial instruments, the amount of accrued investment income since the beginning of 2024 amounted to KZT1.23 trln.
The return on UAPF pension assets distributed to the accounts of contributors (beneficiaries) from the beginning of 2024 as of July 1, 2024 amounted to 6.59%.
The directions for investing pension assets at the expense of the ECPC as of July 1, 2024 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan – 94.38%, deposits of the NBRK – 5.62%, cash in investment accounts – 0.002%.
ECPC’s investment portfolio includes only financial instruments denominated in national currency.
The amount of accrued investment income due to ECPC since the beginning of 2024 as of July 1 amounted to KZT392.22 mln, the ECPC yield was 1.84%.
Let us recall that in the medium and long term a positive real (exceeding accumulated inflation) return on pension savings is ensured.
The detailed structure of investment portfolio of financial instruments managed by the National Bank of Kazakhstan, indicating the issuers and a review of investment activities is posted on the official website of the UAPF. The website enpf.kz also contains information about the structure of the portfolio of pension assets formed at the expense of ECPC.
Investment portfolio managers
The total volume of pension assets managed by IPM is more than KZT52.2 bln.
As of July 1, 2024, pension assets under trust management of Jusan Invest JSC amounted to about KZT9 bln.
The company’s main investments: Government securities of the Ministry of Finance of the Republic of Kazakhstan – 33.99%, shares of Exchange Traded Funds (ETF) – 31.64%, bonds of second-tier banks of the Republic of Kazakhstan – 7.74%, Government securities of foreign countries – 6.82%, REPO – 3, 46%. Note that 59.34% of the portfolio is presented in tenge, 40.66% in US dollars.
As a result of investment activities, the amount of accrued investment income since the beginning of the year as of July 1, 2024 amounted to KZT631.18 mln. The return on pension assets is 7.64%.
The detailed structure of the investment portfolio of financial instruments managed by Jusan Invest JSC, indicating the issuers, is presented on the UAPF website.
As of July 1, 2024, pension assets under trust management of Halyk Global Markets JSC amounted to more than KZT4.1 bln.
The main investments in the portfolio structure are as follows: “reverse repo” (no more than 90 calendar days) – 17.91%, corporate bonds of foreign issuers – 17.09%, bonds of quasi-public organizations of the Republic of Kazakhstan – 16.75%, government securities of the Ministry of Finance of the Republic of Kazakhstan – 10.97%, corporate bonds of organizations of the Republic of Kazakhstan – 8.02%, equity instruments of foreign issuers (ETF Units) – 6.37%.
Investments in national currency amounted to 69.05% of the portfolio, in US dollars – 30.95%.
As a result of investment activities, the amount of accrued investment income since the beginning of 2024 as of July 1, 2024 amounted to KZT259.09 mln. The return on pension assets is 6.44%.
The detailed structure of the investment portfolio of financial instruments managed by Halyk Global Markets JSC, indicating the issuers, is presented on the UAPF website.
As of July 1, 2024, the pension assets of the UAPF, which are in trust management of BCC Invest JSC, amounted to about KZT4.8 bln.
Main areas of investment: bonds of quasi-public organizations of the Republic of Kazakhstan – 34.43%, government securities of the Ministry of Finance of the Republic of Kazakhstan – 12.71%, bonds of second-tier banks of the Republic of Kazakhstan – 9.37%, corporate bonds of resident issuers of the Republic of Kazakhstan – 9.29%, shares (ETF) – 6.59%, corporate bonds of foreign issuers – 6.85%.
84.72% of the portfolio was invested in instruments in national currency, and 15.28% in US dollars.
As a result of investment activities, the amount of accrued investment income since the beginning of 2024 as of July 1 amounted to 3KZT35.23 mln. The return on pension assets is 7.37%.
The detailed structure of the investment portfolio of financial instruments managed by BCC Invest JSC, indicating the issuers, is presented on the UAPF website.
As of July 1, 2024, the pension assets of the UAPF, which are in the trust management of Centras Securities JSC, amounted to more than KZT1.31 bln.
26.06% of assets were invested in government securities of the Ministry of Finance of the Republic of Kazakhstan, repo – 19.24%, bonds of quasi-public organizations – 14.43%, cash in investment accounts – 11.99%, shares and depositary receipts of issuers of the Republic of Kazakhstan – 9.59%, corporate bonds of issuers of the Republic of Kazakhstan – 7.76%.
72.04% of the portfolio was invested in instruments in national currency, in US dollars – 26.35%, in Canadian dollars – 1.60%.
As a result of investment activities and changes in the market value of financial instruments, the amount of accrued investment income since the beginning of 2024 as of July 1 amounted to KZT101.30 mln. The return on pension assets is 8.28%.
The detailed structure of the investment portfolio of financial instruments managed by Centras Securities JSC, indicating the issuers, is presented on the UAPF website.
As of July 1, 2024, pension assets held in trust by Halyk Finance Subsidiary of the Halyk Bank of Kazakhstan JSC amounted to about KZT33 bln.
The main investments in the portfolio structure look like this: “reverse repo” (no more than 90 calendar days) – 25.32%, government securities of the Ministry of Finance of the Republic of Kazakhstan – 15.62%, bonds of quasi-public organizations of the Republic of Kazakhstan – 13.09%, shares of Exchange Traded Funds (ETF) – 12.07%, corporate bonds of foreign issuers – 9.77%.
67.98% of the portfolio was invested in instruments in national currency, in US dollars – 32.00%, in euros – 0.02%.
As a result of investment activities, the amount of accrued investment income since the beginning of 2024 as of July 1 amounted to KZT1,914.96 mln. The return on pension assets is 6.50%.
The detailed structure of the investment portfolio of financial instruments managed by JSC Subsidiary of the People’s Bank of Kazakhstan Halyk Finance, indicating the issuers, is presented on the UAPF website.
Let us remind you that from July 1, 2023, investors can transfer no more than 50% of pension savings into trust management at the expense of compulsory pension contributions (CPC) and compulsory occupational pension contributions (COPC), without taking into account the minimum adequacy threshold for investment portfolio managers (IPM), by choosing such a company yourself. Contributors who have voluntary pension savings can transfer them to IPM in the amount of 100%.
UAPF was founded on August 22, 2013 on the basis of GNPF APF JSC. The founder and shareholder of the UAPF is the Government of the Republic of Kazakhstan represented by the State Institution Committee of State Property and Privatization of the Ministry of Finance of the Republic of Kazakhstan. Trust management of UAPF pension assets is carried out by the National Bank of the Republic of Kazakhstan. In accordance with the pension legislation, the UAPF attracts compulsory pension contributions, employer’s compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions, as well as carries out enrollment and accounting of voluntary pension contributions formed at the expense of the unclaimed amount of guaranteed compensation for the guaranteed deposit, transferred by the organization carrying out mandatory guarantee of deposits, in accordance with the Law of the Republic of Kazakhstan “On mandatory guarantee of deposits placed in second-tier banks of the Republic of Kazakhstan”, ensures the implementation of pension benefits. The Fund also carries out accounting of target assets and target requirements, accounting and crediting of target savings (TS) to target savings accounts, payments of TS to their recipients in bank accounts, accounting for returns of TS in the manner determined by the Government of the Republic of Kazakhstan within the framework of the National Fund for Children program (More details at www.enpf.kz).
[1] formed from compulsory pension contributions, compulsory occupational pension contributions and voluntary pension contributions
[2] excluding money in accounts of pension contributions and benefits
