Cost of US government bonds in portfolio of Kazakh pension fund revealed

Finance Materials 25 April 2019 13:14 (UTC +04:00)

Baku, Azerbaijan, Apr. 25

By Fakhri Vakilov – Trend:

The value of US government bonds in the portfolio of the Unified Accumulative Pension Fund (UAPF) of Kazakhstan as of March 2019 stood at 934.2 billion tenge ($2,457,774,261), Trend reports with reference to the Association of Financiers of Kazakhstan.

Considering individual changes that occurred in the UAPF portfolio of Kazakhstan in March 2019, then US treasuries continue to be actively acquired, short-term US government securities were bought in the amount of 346.9 billion tenge, while the amount of repayments was 159 billion tenge.

Pension assets managed by the National Bank amounted to 9,641.3 billion tenge.

The main share in the portfolio of pension assets (PA) in the UAPF continues to be held by Kazakhstan government securities (GS). However, their share from the beginning of the year decreased from 43.3 percent to 40.7 percent, or to 3,920.4 billion tenge.

Moreover, the share of state securities of foreign countries grows in the portfolio, from 12.7 percent at the beginning of the year to 15.6 percent at the reporting date.

The fund’s funds from Kazakhstan’s second-tier banks (STB) also rose in March.

Thus, over the month, the amount increased by 50.7 billion tenge, to 1,652.7 billion tenge.

The growth of funds of STB was mainly associated with the mechanism for lending priority projects through the STB of Kazakhstan in the amount of 600 billion tenge, under which the bonds of ATFBank JSC (30 billion tenge) and Bank CenterCredit JSC (13.5 billion tenge) were acquired.

The value of shares of Halyk Bank in the UAPF portfolio increased over the month by 5.2 billion tenge, to 87.7 billion tenge.

In the reporting period, the shares of AZNO JSC were sold at 0.3 billion tenge. There was repayment of bonds of Halyk Bank of Kazakhstan JSC at 3.7 billion tenge.

Deposits in foreign banks for the reporting month decreased from 309.7 to 217.2 billion tenge, and deposits in the STB of Kazakhstan decreased from 269.7 to 266.2 billion tenge.

During the reporting month, deposits in DBS BANK LTD were repaid at 102.1 billion tenge, whereas 5.7 billion tenge were placed in Societe Generale.

The fund's net investment income for the first three months of 2019 was 96.9 billion tenge; it increased from 12.1 billion tenge in the first two months of the current year. Whereas investment income for the same period in 2018 was at the level of 66.4 billion tenge.

($1- 760.20 tenge on Apr. 25)


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