NUR-SULTAN – As of May 1, the portfolio of pension assets of the Single Accumulated Pension Fund (SAPF) was 9,761.9 billion tenge (US$25.5 billion). Cash and financial instruments denominated in tenge amounted to 6,613.1 billion tenge (US$17.3 billion) or 67.7 percent, denominated in foreign currency – 3,148.8 billion tenge (US$8.2 billion) or 32.3 percent, according to an overview of investment activities presented recently by the National Bank of Kazakhstan.
According to its strategy, pension assets are invested in financial instruments, in currencies and countries, sectors and issuers with 5.8 percent real profitability from May to April.
Portfolio of pension assets in tenge
Pension assets of SAPF, nominated in tenge, are invested exclusively within areas that are annually approved by the council for the management of the Kazakhstan National Fund.
In April, investment of pension assets in tenge was 76 billion tenge (excluding investments in money market instruments), including national papers of the Ministry of Finance worth 46 billion tenge (US120.1 million) with a weighted average yield of 8.7 percent annual. Bonds of the European Bank for Reconstruction and Development were purchased in the amount of 30 billion tenge (US$78.3 million) with a yield equal to inflation and a premium of 1.0 percent per annum.
In the reporting period, free cash in tenge was also placed in short-term money market instruments. At the same time, these investments are not a strategic investment objective and are carried out under current liquidity management to maintain the profitability of pension assets.
Portfolio of pension assets in foreign currency
Pension assets of SAPF in foreign currency are invested in accordance with the general structure and strategy of investing foreign exchange assets established the fund’s Investment Declaration.
In April, the investment of pension assets in foreign currency reached 168.7 billion tenge (US$440.4 million). U.S. government securities with a weighted average yield of 2.4 percent per annum were acquired for this volume.
The amount of accrued investment income since the beginning of the year was 172.4 billion tenge (US$450.1 million). The profitability of pension assets since the beginning of the year was 1.62 percent. At the same time, as of May 1 the profitability of pension assets for the last 12 months (from May to April) was 10.7 percent with inflation of 4.9 percent. Thus, over the past 12 months, the real profitability of the pension assets was 5.8 percent.