The website enpf.kz presents a report on the management of pension assets by the National Bank of the Republic of Kazakhstan (NBRK) and investment portfolio managers (IPM) in the section “Indicators - Investment activities”. The total volume of pension assets as of January 1, 2024 amounted to about KZT17,832.9 billion. At the same time, the pension assets of the UAPF, which are in trust management of the National Bank of the Republic of Kazakhstan, amounted to more than KZT17,806 billion. Pension assets managed by IPM amounted to KZT26.9 billion.
Investment portfolio of pension assets managed by the NBRK
The main directions for investing pension assets of the NBRK as of January 1, 2024 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan - 46.6%, bonds of quasi-state companies - 9.1%, deposits of the NBRK - 4.9%, bonds and deposits of second-tier banks of the Republic Kazakhstan – 5.9%, shares and depositary receipts of issuers of the Republic of Kazakhstan – 2%, microfinance organizations – 2%.
The investment portfolio, broken down by the currencies in which financial instruments purchased from pension assets are denominated, as of January 1, 2024, looks like this: investments in national currency - 68.3%, in US dollars - 31.7% of the pension portfolio 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 KZT1,501.2 billion, for assets under external management – more than KZT138.2 billion, other income – over KZT5.4 billion. Foreign currency revaluation was negative and amounted to KZT38.1 billion.
Thus, due to the diversification of the investment portfolio of pension assets by instruments, industries and currencies, the total income for 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 for 2023 amounted to more than KZT1,606.8 billion.
The return on UAPF pension assets distributed to the accounts of depositors (recipients) for 2023 amounted to over 10.1% with inflation of 9.8%.
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 the investment portfolio of financial instruments managed by the National Bank of Kazakhstan, indicating the issuers and an overview of investment activities are posted on the official website of the UAPF. Let us recall that in Kazakhstan there is a model of state guarantee of the safety of pension savings. In accordance with Article 217 of the Social Code of 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 level of inflation at the time of receipt of the right to pension benefits.
Investment Portfolio Managers
The total amount of funds managed by IPM is 26.9 billion tenge.
As of January 1, 2024, pension assets under trust management of Jusan Invest JSC amounted to about KZT6 billion.
The company's main investments: government securities of the Ministry of Finance of the Republic of Kazakhstan - 45.9%, shares of Exchange Traded Funds (ETF) - 28.2%, REPO - 7.9%, bonds of second-tier banks of the Republic of Kazakhstan - 7.2%, government securities of foreign countries - 5, 6% of the portfolio. Note that 66.1% of the portfolio is presented in tenge, 33.9% 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 KZT606.6 million. The return on pension assets is 13.5%.
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 January 1, 2024, pension assets under trust management of Halyk Global Markets JSC amounted to KZT3.2 billion.
The main investments in the portfolio structure are as follows: “reverse repo” (no more than 90 calendar days) - 38.4%, bonds of quasi-public organizations of the Republic of Kazakhstan - 13%, bonds of microfinance organizations - 8.1%, securities with state status issued by foreign central governments - 7.9%, equity instruments of foreign issuers (ETF units) - 8.5%. Investments in national currency accounted for 73.1% of the portfolio, in US dollars - 26.9%.
As a result of investment activities, the amount of accrued investment income for 2023 amounted to about KZT404 million. The return on pension assets is 15.6%.
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 January 01, 2024, the pension assets of the UAPF, which are in trust management of BCC Invest JSC, amounted to KZT2.9 billion.
Among the main areas of investment, the following can be identified: REPO – 28.5%, bonds of quasi-public organizations of the Republic of Kazakhstan – 24.7%, government bonds of the Republic of Kazakhstan – 17.5%, shares (ETF on indices) – 16.5%, US government bonds - 5%, MFO bonds - 3%, corporate bonds of resident issuers of the Republic of Kazakhstan - 2.8%, portfolio. 71.5% of the portfolio was invested in instruments in national currency, and 28.5% in US dollars.
As a result of investment activities for 2023, the amount of accrued investment income amounted to more than KZT230.2 million. The return on pension assets was 13.1%.
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 January 01, 2024, the pension assets of the UAPF, which are in the trust management of Centras Securities JSC, amounted to more than KZT1 billion.
33.9% of assets are invested in government securities of the Ministry of Finance of the Republic of Kazakhstan, bonds of quasi-public organizations account for 19.3% of the total volume, bonds of second-tier banks of the Republic of Kazakhstan - 16.5%, REPO - 8.6%, shares and depositary receipts issued by organizations of the Republic of Kazakhstan - 8 .2%, US government bonds - 7.9%, cash in investment accounts - 2.6%. 74.2% of the portfolio was invested in instruments in national currency, in US dollars - 23.7%, in Canadian dollars - 2.1%
As a result of investment activities and changes in the market value of financial instruments, the amount of accrued investment income for 2023 amounted to approximately KZT105.3 million. The return on pension assets is 10.7%.
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 January 1, 2024, pension assets held in trust by Halyk Finance Subsidiary of the Halyk Bank of Kazakhstan JSC amounted to about KZT13.8 billion.
The main investments in the portfolio structure are as follows: “reverse repo” (no more than 90 calendar days) – 66.7%, shares of Exchange Traded Funds (ETF) – 8.2%, government securities of foreign countries – 6.1%, bonds of second-tier banks RK – 5.8%, bonds of quasi-public organizations of the Republic of Kazakhstan – 3.9%, government securities of the Ministry of Finance of the RK – 3.7%.
84.2% of the portfolio was invested in instruments in national currency, 15.4% in US dollars, 0.4% in euros.
As a result of investment activities, the amount of accrued investment income for 2023 amounted to more than KZT328 million. The return on pension assets for 2023 is -17.2%.
The detailed structure of the investment portfolio of financial instruments managed by Halyk Finance Subsidiary of the Halyk Bank of Kazakhstan JSC, indicating the issuers, is presented on the UAPF website.
Let us note that after receiving pension assets from the Unified Pension Pension Fund, IPM invests them in permitted financial instruments specified in the Rules for the implementation of investment portfolio management activities, approved by Resolution of the Board of the National Bank of the Republic of Kazakhstan dated July 1, 2023 No. 62, and provided for in the IPM Investment Declaration. When transferring pension savings to IPM management, the state guarantee is replaced by a guarantee from the management company to ensure a minimum level of return on pension assets. The minimum level of return is calculated based on the weighted average return of pension assets transferred to the management of IPM, operating on the market.
Let us remind you that from July 1, 2023, contributors can transfer into trust management no more than 50% of pension savings 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%.
