May 1, 2012
Press release
Pension assets investment portfolio – April 2012
Starting from January 01, 2012 accumulative pension funds switched on the multiportfolio
system of pension assets management suggesting contributors’ participation in their pension
accumulations management.
Multiportfolio system includes three different strategies of pension assets management
(investment portfolio):
1. Conservative;
2. Moderate;
3. Aggressive.
Presently two investment portfolios are offered to contributors – moderate and conservative.
Aggressive strategy will be introduced in 2015.
Every investment portfolio varies in financial instruments selection, yield rate and risk level
depending on a contributor’s choice.
Conservative investment portfolio
Structure of conservative investment portfolio does not include shares. It basically contains
Government securities of the Republic of Kazakhstan and deposits and as result it is less exposed
to risks.
Moderate investment portfolio
Moderate investment portfolio includes upto 30% of shares. Basically the portfolio contains
financial instruments with fixed income (Government securities of the Republic of Kazakhstan
and foreign government securities, bonds of local and foreign emitters and international financial
organizations, deposits in banks of RK etc).
Also our Fund’s moderate investment portfolio includes allocated refined gold (upto 10%) kept
in JP Morgan bank in London.
Structure of moderate investment portfolio should be well-balanced to avoid sharp fluctuations
of return and earn stable income of various instruments like shares and fixed-income instruments.
Actually moderate portfolio represents previous structure of the Fund’s investment portfolio.
Aggressive investment portfolio
Aggressive portfolio is supposed to include mainly shares (upto 80%), so this portfolio’s return
would be high. However this portfolio would be exposed to higher risks because prices of shares
fluctuate considerably.
From January 01, 2015 all contributors under age of retirement have right to choose investment
portfolio to keep their pension accumulations on their own, i.e. choosing investment strategy
from aggressive to conservative.
Moderate investment portfolio of GNPF
Table 1. Structure of PA moderate portfolio by shares.
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Securities
Government securities of RK
Share on 01.04.2012
40,65%
Share on 01.05.2012
39,70%
Foreign Government securities
5,64%
3,33%
IFO
4,03%
3,39%
Corporate bonds of Kazakhstani emitters
13,60%
13,90%
Foreign corporate bonds
1,38%
1,35%
PPN
2,63%
2,64%
Shares and depository reciepts of Kazakhstani emitters
1,06%
1,05%
Foreign shares and depository reciepts
1,34%
1,26%
Refined precious metals
8,16%
8,77%
Deposits
17,82%
18,45%
REPO
2,55%
4,41%
Cash and other assets
1,14%
1,75%
Total
100,00%
100,00%
Government securities of the Republic of Kazakhstan
According to the Table 1, moderate portfolio of pension assets investment as of April 01, 2012 is
basically represented by the Government securities of RK. Share of these securities is 39.70% of
portfolio including securities of Ministry of Finances with the share of 94.53%.
Foreign Government and IFO securities
As of April 01, 2012 shares of foreign government securities and IFO bonds are 3.33% and
3.39%.
In March 2012 share of foreign government securities decreased by 2.3 p.p. due to partial sale of
US Treasury.
Deposits in second tier banks of the Republic of Kazakhstan
Deposit share is 18.45%. The deposit share in the portfolio was increased by 0.6 p.p. Deposits
are allocated in following banks: Kazkommertsbank, Sberbank Rossii, VTB Bank, ATF Bank,
Eurasian bank, Caspii Bank , Zesna Bank and BankCenterCredit.
Corporate bonds of Kazakhstani emitters
Pension assets of the moderate portfolio of GNPF are also allocated into bonds of Kazakhstani
companies with the state participation:
“SAMRUK KAZYNA” SWF” JSC – management holding for state assets of the Republic of
Kazakhstan under the government control;
“KazMunaiGaz” JSC – National petroleum company;
“Bank for Development of Kazakhstan” JSC – state bank of Kazakhstan;
“Kazakhstani mortgage company” JSC – operator of secondary market for mortgage, refunding
of long-term mortgage creditors;
“Food Contractual Corporation” NC” JSC – national company providing purchase, formation,
account, storage, refreshing, transportation, sale of the state’s grain resources and grain products
as well as other functions determining by the Government of RK;
“Mangystau Distributive Power Supply Company” JSC – one of the largest power supply
companies.
Share of corporate bonds increased by 0.3 p.p. due to Eurobond of ATF Bank purchase and came
to 13.9%.
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Corporate bonds of foreign emitters
Share of corporate bonds of foreign emitters in the moderate portfolio is 1.35%. Investments
include bonds of following foreign emitters:
Citigroup Inc. – the largest international corporation, one of the world’s leaders in financial
service;
JP Morgan Chase Bank – one of the oldest and most affluent financial organizations in the world.
Quartered in New York the financial institution is investment and commercial banking leader;
Shares and depository receipts of emitters of RK
Shares and depository receipts in the moderate portfolio amount to 1.05%. These investments
include shares and depository receipts of Kazakh companies such as:
Halyk Bank of Kazakhstan – second in assets volume backbone commercial bank of the country;
DM Kazmunaigaz – Kazakhstani petroleum company. The joint stock company is a subsidiary
of KazMunaiGaz National Company JSC;
Kazakhtelecom – one of the largest telecommunication companies in Kazakhstan with the status
of the national communication operator.
Foreign shares and depository receipts
Share of foreign shares in the portfolio amounted to 1.26% decreasing by 0.1 p.p. Investments
include shares of foreign companies as follows:
Freeport-McMoRan Copper & Gold Inc. – American and the world's lowest-cost copper
producer and one of the world's largest producers of gold;
Deutsсhe Bank – the largest bank group of Germany. The bank is in investment banking and
commerce services mainly;
Deutsche Telekom – German telecom company is Europe’s largest and the third in the world;
Rio Tinto PLC – a world leader in finding, mining and processing the earth's mineral resources;
Sberbank – Russia’s largest bank.
Precious metals
Investments into precious metals are represented by investments in gold. Gold share in the
moderate portfolio increased by 0.6 p.p. and came to 8.77%. This increase was caused by partial
acquisition of gold.
Table 2. Structure of PA conservative portfolio by currency types.
As you can see from the Table 2, investments into instruments nominated in KZT came to 76.2%;
USD – 18.3%; EUR – 0.4%; RUB – 3.7%; BRL -1.2% and GBP – 0.2%.
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Conservative portfolio of GNPF
Table 3. Structure of PA conservative portfolio by shares.
Securities
Government securities of RK
Deposits
Share on 01.04.2012 Share on 01.05.2012
94,50%
74,93%
0,00%
14,48%
REPO
Cash and other assets
Total
0,00%
5,50%
100,00%
0,00%
10,58%
100,00%
As you can see from the Table 3, the conservative investment portfolio of pension assets is
represented by the Government securities of RK, deposits and cash on investment account. As of
May 01, 2012 share of the Government securities is 74.93%, deposits – 14.48% and cash –
10.58%.
Deposits in second-tier banks of Kazakhstan
Within April 2012 pension assets of the conservative portfolio were allocated in STB deposits.
Deposits take 14.48% of total conservative portfolio. These deposits are allocated in Zesna Bank
JSC and BankCenterCredit JSC.
Table 4. Structure of PA conservative portfolio by currencies.
Currencies
share
KZT
100%
Conservative portfolio PA
100%
As you can see from the Table 4, as of May 01, 2012 the conservative portfolio includes
financial instruments nominated only in the National currency.
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