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 as of March 1, 2024 amounted to more than KZT18,509.38 bln. As of March 1, 2024, pension assets[1] (hereinafter - PA) of the UAPF, held in trust by the NBRK, formed through compulsory pension contributions (hereinafter - CPC), compulsory occupational pension contributions (hereinafter - COPC), voluntary pension contributions (hereinafter - VPC), amounted to KZT18,449.01 bln[2]. The volume of pension assets of the NBRK, formed at the expense of employer’s mandatory pension contributions (hereinafter referred to as ECPC PA), which are in trust management of the NBRK, is more than KZT18.5 bln.
Pension assets managed by IPM amounted to more than KZT41.87 bln.
Investment portfolio of pension assets managed by the NBRK
The main directions for investing pension assets of the NBRK, formed at the expense of CPC, COPC, VPC, as of March 1, 2024 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan - 46.74%, bonds of quasi-public companies - 9.83%, bonds of second-tier banks Republic of Kazakhstan – 4.31%, deposits of the National Bank of Kazakhstan – 3.28%, shares and depositary receipts of issuers of the Republic of Kazakhstan – 2.01%, microfinance organizations – 1.95%.
The investment portfolio by currencies in which financial instruments purchased at the expense of CPC, COPC, VPC are denominated, as of March 1, 2024, looks like this: investments in national currency - 67.8%, in US dollars - 32.2% 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 KZT275.12 bln, for assets under external management - KZT103.05 bln. The revaluation of foreign currency was negative and amounted to KZT26.41 bln. Other losses amounted to KZT0.65 bln.
Due to the diversification of the investment portfolio of pension assets by instruments, industries and currencies, the total income for January-February 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 KZT351.12 bln, which exceeds the same period last year by 67.05% or KZT140.93 bln.
The return on UAPF pension assets distributed to the accounts of contributors (beneficiaries) has amounted to 1.91% since the beginning of 2024.
The main areas of ECPC PA investment as of March 1, 2024 are as follows: government securities of the Ministry of Finance of the Republic of Kazakhstan - 72.26%, repo transactions - 18.58%, cash in investment accounts - 9.16%.
The ECPC PA investment portfolio includes only financial instruments denominated in national currency.
The amount of accrued investment income under ECPC PA since the beginning of 2024 as of March 1, 2024 amounted to KZT14.58 mln. As of March 1, 2024, the ECPC PA yield for the period since the beginning of 2024 is 0.11%.
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. Also on the website enpf.kz there is 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 KZT41.87 bln.
As of March 1, 2024, pension assets under trust management of Jusan Invest JSC amounted to more than KZT7.5 bln.
The company's main investments: Government securities of the Ministry of Finance of the Republic of Kazakhstan - 38.28%, shares of Exchange Traded Funds (ETF) - 26.32%, REPO - 13.69%, Government securities of foreign countries - 7.74% of the portfolio, bonds of second-tier banks of the Republic of Kazakhstan - 5 .45%. Note that 64.22% of the portfolio is presented in tenge, 35.78% 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 the first 2 months of 2024 amounted to KZT137.63 mln. The return on pension assets was 1.88%.
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 March 1, 2024, pension assets under trust management of Halyk Global Markets JSC amounted to more than KZT3.6 bln.
The main investments in the portfolio structure are as follows: “reverse repo” (no more than 90 calendar days) - 44.72%, bonds of quasi-public organizations of the Republic of Kazakhstan - 11.61%, MFO bonds - 7.29%, securities with the status of government issued central governments of foreign countries - 6.91%, bonds of second-tier banks of the Republic of Kazakhstan - 5.62%, corporate bonds of foreign issuers - 5.52%. Investments in national currency amounted to 76.57% of the portfolio, in US dollars - 23.43%.
As a result of investment activities, the amount of accrued investment income since the beginning of 2024, as of March 1, 2024, amounted to KZT52.26 mln. The return on pension assets is 1.41%.
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 March 1, 2024, the pension assets of the UAPF, which are in the trust management of BCC Invest JSC, amounted to about KZT4 bln.
Main areas of investment: REPO – 24.41%, bonds of quasi-public organizations of the Republic of Kazakhstan – 20.66%, shares (ETF on indices) – 15.42%, government bonds of the Republic of Kazakhstan – 12.94%, bonds of second-tier banks of the Republic of Kazakhstan – 8.16 %, corporate bonds of foreign issuers - 7.53%, US government bonds - 3.62%, shares and depositary receipts of issuers of the Republic of Kazakhstan - 2.40%, MFO bonds - 2.26% of the portfolio. 73.58% of the portfolio was invested in instruments in national currency, and 26.42% in US dollars.
As a result of investment activities for the first 2 months of 2024, the amount of accrued investment income amounted to KZT38.28 mln. The return on pension assets is 0.96%.
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 March 01, 2024, the pension assets of the UAPF, which are in the trust management of Centras Securities JSC, amounted to more than KZT1.1 bln.
30.97% of assets were invested in government securities of the Ministry of Finance of the Republic of Kazakhstan, repo - 25.23%, bonds of quasi-public organizations - 16.3%, shares and depositary receipts of issuers of the Republic of Kazakhstan - 8.05% bonds of second-tier banks of the Republic of Kazakhstan - 7.33%, government US bonds - 7.23%, cash in investment accounts - 2.16%. 75.90% of the portfolio was invested in instruments in national currency, in US dollars - 22.19%, in Canadian dollars - 1.91%.
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 March 1, 2024, amounted to KZT34.17 mln. The return on pension assets is 2.99%.
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 March 1, 2024, pension assets held in trust by Halyk Finance the Subsidiary of the HalykBank of Kazakhstan JSC amounted to more than KZT25.6 bln.
The main investments in the portfolio structure look like this: “reverse repo” (no more than 90 calendar days) – 54.23%, Exchange Traded Funds (ETF) units – 8.62%, government securities of foreign countries – 7.44%, bonds of quasi-public organizations of the Republic of Kazakhstan - 5.26%, cash in accounts - 4.60%, bonds of second-tier banks of the Republic of Kazakhstan - 3.76%.
75.48% of the portfolio was invested in instruments in national currency, 24.31% in US dollars, 0.21% in euros.
As a result of investment activities, the amount of accrued investment income as of March 1, 2024 from the beginning of 2024 amounted to KZT317.17 mln. The return on pension assets is 1.47%.
The detailed structure of the investment portfolio of financial instruments managed by by Halyk Finance the Subsidiary of the HalykBank of Kazakhstan JSC, 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 (CPC), 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%.
[1] formed through compulsory pension contributions, compulsory occupational pension contributions, voluntary pension contributions
[2] excluding money in accounts of pension contributions and benefits
