BAKU, Azerbaijan, April 14. The National Bank of Kazakhstan introduced a new concept aimed to change the investment policy of the National Fund of Kazakhstan, Trend reports, citing the National Bank of Kazakhstan.
The relevant legal act is accessible on the governmental web portal.
According to the new investment guidelines, the savings portfolio of the National Fund will consist of bonds (60 percent), and shares (30 percent), up to 5 percent may be allocated to alternative instruments, and up to 5 percent to gold.
The guidelines also entail diversification of the bond portfolio into government bonds of developed countries, as well as corporate and government bonds of developing countries.
The National Bank of Kazakhstan reveals that the key objective of the new guidelines is to strengthen the foundation of the National Fund, in addition to reinforcing its status as a serious institutional investor.
The National Fund of the Republic of Kazakhstan is a sovereign wealth fund created by the government of Kazakhstan in 2000 in order to manage oil revenue more effectively.
The National Fund is the state fund of the Republic of Kazakhstan, which is a combination of financial assets concentrated on the account of the Government of Kazakhstan in the National Bank of Kazakhstan. The fund aims to serve as a “savings account” for the government, in addition to playing a stabilizing role to sustain the liquidity of assets under control.