The site enpf.kz provides a report on the management of pension assets of NB RK and IPM as of May 1, 2023. A detailed report on the investment of pension savings is posted on the website enpf.kz in the section “Indicators - Investment activity”, which monthly provides information on the management of pension assets by the National Bank of the Republic of Kazakhstan (NB RK) and investment portfolio managers (IPM). The total amount of pension assets as of May 1, 2023 amounted to about KZT15,677.57 bln. At the same time, UAPF pension assets held in trust by the National Bank of the Republic of Kazakhstan amounted to KZT15,668.2 bln. Pension assets managed by IPM amounted to KZT9.37 bln
Investment portfolio of pension assets managed by NB RK
The main areas for investing NB RK pension assets as of May 1, 2023 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan - 47.38%, bonds of quasi-public companies - 10.86%, bonds and deposits of second-tier banks of the Republic of Kazakhstan - 6.98% , government securities of foreign states - 4.60%, securities of international financial organizations - 2.43%, corporate bonds of Kazakhstani issuers - 0.10%.
As of May 1, 2023, the investment portfolio in terms of currencies in which financial instruments purchased using pension assets are denominated looks as follows: investments in the national currency - 70.89%, in US dollars - 29.06%, in other currency - 0.05% of the portfolio of pension assets. From the analysis of the income structure, it follows that income in the form of interest on securities, including on placed deposits and reverse REPO operations and from market revaluation of securities, amounted to KZT508.96 bln, on assets under external management - KZT25.43 bln, other income - KZT1.59 bln. At the same time, the revaluation of foreign currency brought a loss in the amount of KZT54.16 bln.
Thus, due to the diversification of the investment portfolio of pension assets across instruments, industries and currencies, the total income for April 2023 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 2023 amounted to KZT481.82 bln.
The return on UAPF pension assets distributed to the accounts of contributors (beneficiaries) from the beginning of 2023 amounted to 3.13% with inflation of 4.20%.
At the same time, as of May 1, 2023, the profitability of pension assets for the last 12 months (from May 2022 to April 2023) for UAPF contributors (beneficiaries) amounted to 8.93%.
Recall that in the medium and long term, a positive real (exceeding accumulated inflation) return on pension savings is ensured.
A detailed structure of the investment portfolio of financial instruments managed by NB RK with indication of issuers and an overview of investment activities are posted on the official website of the UAPF. Recall that in Kazakhstan there is a model of the state guarantee of the safety of pension savings. In accordance with Article 5 of the Law of the Republic of Kazakhstan On Pension Provision in the Republic of Kazakhstan, the state guarantees beneficiaries the safety of compulsory pension contributions and compulsory occupational pension contributions to the UAPF in the amount of contributions actually made, taking into account the inflation rate at the time of obtaining the right to pension benefits.
Investment portfolio managers
The total amount of funds managed by IPMs is KZT9.37 bln.
As of May 1, 2023, pension assets held in trust by Jusan Invest JSC amounted to KZT4.13 bln.
The most significant investments of the company: Government securities of the Ministry of Finance of the Republic of Kazakhstan - 35.29%, shares of Exchange Traded Funds (ETF) - 32.73%, NB RK notes - 21.87%; Government securities of foreign states - 8.80% of the portfolio. Note that 58.40% of the portfolio is presented in tenge; 41.60% - in US dollars.
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 for 2023 amounted to KZT222.61 mln. Return on pension assets - 5.10%.
A detailed structure of the investment portfolio of financial instruments managed by Jusan Invest JSC, indicating issuers, is presented on the UAPF website.
As of May 1, 2023, pension assets held in trust by Halyk Global Markets JSC amounted to KZT2.56 bln.
The main investments in the portfolio structure are as follows: "reverse REPO" (no more than 90 calendar days) is 32.65%; bonds of quasi-public organizations of the Republic of Kazakhstan - 19.65%; equity instruments of foreign issuers (ETF units) – 14.84%; IFO bonds - 9.92%, NB RK notes - 9.23%, state-owned securities issued by foreign central governments - 6.94%. Investments in the national currency amounted to 78.19% of the portfolio, in US dollars - 21.81%
As a result of investment activities, the amount of accrued investment income since the beginning of the year as of May 1, 2023 amounted to KZT115.26 mln. Return on pension assets - 4.09%.
A detailed structure of the investment portfolio of financial instruments managed by Halyk Global Markets JSC with indication of issuers is presented on the UAPF website.
UAPF pension assets held in trust by BCC Invest JSC amounted to KZT1.44 bln.
Among the main areas of investment, the following can be distinguished: government bonds of the Republic of Kazakhstan - 27.46%; bonds of quasi-public organizations of the Republic of Kazakhstan - 16.11%; shares (ETF for indices) - 10.42%, bonds of IFOs - 5.91%, corporate bonds of issuers-residents of the Republic of Kazakhstan - 5.29%, shares and depositary receipts of foreign issuers - 4.36% of the portfolio, funds on investment accounts - 28.53%. 76.91% of the portfolio was invested in instruments in national currency, 23.09% in US dollars.
As a result of investment activities, the amount of accrued investment income since the beginning of the year as of May 1, 2023 amounted to KZT56.76 mln. Return on pension assets - 3.47%. Most of the accrued investment income came from interest on securities, including on placed deposits and reverse REPO operations.
A detailed structure of the investment portfolio of financial instruments managed by BCC Invest JSC with an indication of issuers is presented on the UAPF website.
UAPF pension assets held in trust management by Centras Securities JSC amounted to KZT994.32 mln.
61.81% of assets are invested in government securities of the Ministry of Finance of the Republic of Kazakhstan; cash on investment accounts is 11.52%; shares and depositary receipts issued by organizations of the Republic of Kazakhstan - 8.76%, bonds of quasi-public organizations - 8.66%. 77.99% of the portfolio was invested in instruments in national currency, 22.01% in US dollars.
As a result of investment activities and changes in the market value of financial instruments, the accrued investment income from the beginning of the year as of May 1, 2023 amounted to 32.12 million tenge. Return on pension assets - 2.98%.
A detailed structure of the investment portfolio of financial instruments managed by Centras Securities JSC with indication of issuers is presented on the UAPF website.
As of May 1, 2023, pension assets held in trust by Halyk Finance Subsidiary of Halyk Bank of Kazakhstan JSC amounted to KZT248.53 mln.
Investments in the portfolio structure are as follows: "reverse REPO" (no more than 90 calendar days) is 60.85%, funds on investment accounts - 12.00%, MFIs - 6.81%, NB RK notes - 6.81%, bonds of quasi-public organizations of the Republic of Kazakhstan - 4.91%.
100% of the portfolio is invested in instruments in national currency. As a result of investment activities, the amount of accrued investment income since the beginning of the year as of May 1, 2023 amounted to KZT6.16 mln. Return on pension assets - 4.81%.
A detailed structure of the investment portfolio of financial instruments managed by Halyk Finance Subsidiary of Halyk Bank of Kazakhstan JSC with indication of issuers is presented on the UAPF website.
Recall that after receiving pension assets from UAPF, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by the Resolution of the Board of the National Bank of the Republic of Kazakhstan dated February 3, 2014 No. 10, and provided for in the IPM Investment Declaration. When transferring pension savings to IPM management, the state guarantee is replaced by the guarantee of the management company to ensure the minimum level of return on pension assets. The minimum level of return is calculated based on the weighted average return on pension assets transferred to IPM management and operating on the market.
