Merging of UlarUmit and BTA Kazakhstan pension funds to strengthen the market
Merging of UlarUmit and BTA Kazakhstan pension funds will contribute to market reinforcement, said the structure's top managers at a press conference in Almaty, CaspioNet reported.
The UlarUmit pension fund's profit after its merger with BTA Kazakhstan before the end of the year will increase by at least 5.5%. Such a forecast was voiced by the fund's top management at a press conference in Almaty.
It was previously reported that in April 2011, the BTA has acquired the TSATEK-Invest's blocking minority ownership. As a result, the state-owned bank became the sole shareholder of Kazakhstan's second largest pension fund in terms of its assets.
"It is clear that we are dealing with large pension funds. Creditors, from the board of directors, have approved the deal, Anvar Saidenov, CEO at BTA Bank JSC said. And of course, the creditors were aware of such a major transaction and further consolidation of the fund".
The UlarUmit pension fund is planning to invest 40 billion tenge in Kazakhstan's economy. Capital investments have recently been considered at a meeting with representatives of the Samruk-Kazyna National Welfare Fund and the country's largest funds, where the issue of profitability and the conditions under which pension funds are willing to invest in Kazakhstan were discussed. The point is that the ended crisis dampened institutional investors' enthusiasm and now they are cautious when it comes to selecting instruments for capital investment.
"This block of the portfolio demonstrated negative dynamics in 2008, and there was a corresponding response among both the public and the press. This year has shown that these instruments can restore their market positions", Gulnara Alimgaziyeva, CEO of Ular Umit Pension Savings Fund said.
As a result of merging of pension funds, which pertain to BTA, a major new fund with a 20 percent market share will occur in Kazakhstan. The structure's equity capital will amount to 13 billion tenge.