The report on the investment of pension savings as of September 1, 2023 is posted on the enpf.kz website in the “Indicators - Investment Activity” section, where information on the management of pension assets by the National Bank of the Republic of Kazakhstan (NBRK) and investment portfolio managers (IPM) is provided monthly. The total volume of pension assets as of September 1, 2023 amounted to 16,772.89 billion tenge. At the same time, pension assets of the UAPF, which are in trust management of the National Bank of the Republic of Kazakhstan, amounted to KZT16,759.31 billion. Pension assets managed by IPM amounted to KZT10.28 billion.
Investment portfolio of pension assets managed by the NBRK
As of September 1, 2023, the structure of the main investments of the NBRK, as a trustee, in financial instruments is presented as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan - 48.11%, bonds of quasi-public companies - 10.25%, bonds of second-tier banks of the Republic of Kazakhstan - 5 .19%, government securities of foreign states - 4.51%, securities of international financial organizations - 2.20%, deposits of the National Bank of Kazakhstan - 2.64%, shares and depository receipts of issuers of the Republic of Kazakhstan - 1.62%.
The structure of the investment portfolio of pension assets of the UAPF, which are in trust management of the NBRK, by currency as of September 1, 2023 is as follows: investments in national currency - 69.28%, in US dollars - 30.70%, in other currencies - 0.03% of the pension asset portfolio.
It should be noted that in the structure of investment income, KZT913.18 billion is income in the form of remuneration on securities, including on placed deposits and reverse repo transactions and from market revaluation of securities, KZT153.44 billion is income on assets, under external management, KZT3.14 billion - other income. Revaluation of foreign currency was negative and amounted to KZT7.88 billion.
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 as of September 1, 2023 from the beginning of the year amounted to KZT1,061,880 million.
The return on UAPF pension assets distributed to the accounts of contributors (beneficiaries) from the beginning of 2023 amounted to 6.77% with inflation of 6.60%.
Let us remind you that the return on pension assets for certain short periods of time is not an indicator of the effectiveness of their management. Pension assets are characterized by a long investment horizon and one of the main goals of their investment is to obtain real returns in the long term.
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 recipients 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 KZT10.28 billion.
As of September 1, 2023, pension assets under trust management of Jusan Invest JSC amounted to KZT4.14 billion.
The company's most significant investments: government securities of the Ministry of Finance of the Republic of Kazakhstan - 34.68%, shares of Exchange Traded Funds (ETF) - 29.05%, notes of the NBRK - 24.26%, government securities of foreign countries - 6.69%, repo - 5.15%. Note that 64.19% of the portfolio is presented in tenge; 35.81% - 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 as of September 1, 2023 from the beginning of the year amounted to KZT326.91 million. The return on pension assets was 7.79%.
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 September 1, 2023, pension assets under trust management of Halyk Global Markets JSC amounted to KZT2.48 billion.
The company's most significant investments: “reverse repo” (no more than 90 calendar days) is 26.71%; bonds of quasi-public organizations of the Republic of Kazakhstan – 20.90%; equity instruments of foreign issuers (ETF units) – 16.57%; MFO bonds – 11.55%, NBRK Notes – 8.62%, securities with government status issued by central governments of foreign countries – 7.36%. Investments in national currency accounted for 75.49% of the portfolio, in US dollars – 24.51%.
As a result of investment activities, the amount of accrued investment income as of September 1, 2023 from the beginning of the year amounted to KZT301.46 million. The return on pension assets has amounted to 11.65% since the beginning of 2023.
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
Pension assets of the UAPF, which are in trust management of BCC Invest JSC, amounted to KZT1.48 billion.
The main areas of investment are as follows: government bonds of the Republic of Kazakhstan - 33.04% of the portfolio, bonds of quasi-public organizations of the Republic of Kazakhstan - 22.68%, REPO - 13.47%, shares (ETF on indices) - 9.09%, bonds of microfinance organizations - 6, 33%, corporate bonds of resident issuers of the Republic of Kazakhstan - 5.42%, shares and depository receipts of foreign issuers - 2.72%. 77.10% of the portfolio was invested in instruments in national currency, and 22.9% in US dollars.
As a result of investment activities, the amount of accrued investment income as of September 1, 2023 from the beginning of the year amounted to KZT132.63 million. The return on pension assets was 8.74%. The majority of accrued investment income came from remuneration on reverse repo transactions and income from market revaluation of securities.
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 September 1, 2023, the pension assets of the UAPF, which are in trust management of Centras Securities JSC, amounted to KZT0.91 billion.
57.77% of assets are invested in government securities of the Ministry of Finance of the Republic of Kazakhstan, cash in investment accounts is 11.93%, REPO - 9.81%, bonds of quasi-state organizations - 9.31%, shares and depositary receipts issued by organizations of the Republic of Kazakhstan - 9, 05%. 78.60% of the portfolio was invested in instruments in national currency, and 21.40% in US dollars.
As a result of investment activities and changes in the market value of financial instruments, the amount of accrued investment income as of September 1 from the beginning of 2023 amounted to KZT65.04 million. The return on pension assets since the beginning of 2023 has amounted to 6.50%.
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 September 1, 2023, pension assets held in trust by the Halyk Finance Subsidiary of the Halyk Bank of Kazakhstan JSC amounted to KZT1.26 billion.
Investments in the portfolio structure are as follows: “reverse repo” (no more than 90 calendar days) is 60.93%, bonds of quasi-public organizations of the Republic of Kazakhstan - 13.08%, government securities of the Ministry of Finance of the Republic of Kazakhstan - 6.23%, government securities of foreign states - 3.44 %, shares of Exchange Traded Funds (ETF) - 3.42%, bonds of second-tier banks of the Republic of Kazakhstan - 2.40%, corporate bonds of issuers of the Republic of Kazakhstan - 1.75%, microfinance organizations - 1.54%.
92.47% was invested in instruments in national currency, in US dollars - 0.68%, in euros - 6.86%.
As a result of investment activities, the amount of accrued investment income as of September 1, 2023 from the beginning of 2023 amounted to KZT33.38 million. The return on pension assets since the beginning of 2023 has amounted to 10.47%.
The detailed structure of the investment portfolio of financial instruments managed by the Halyk Finance Subsidiary of the Halyk Bank of Kazakhstan JSC, indicating the issuers, is presented on the UAPF website.
Please 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, 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. Investors who have voluntary pension savings can transfer them to IPM in the amount of 100%.
