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. 1 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%. 2 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%. 3 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. 4