At the same time for a few days before the publication of the November data on the LS portal published the news that the national Bank plans to transfer foreign management companies of the pension assets at $ 2.8 billion. The regulator explained it
“reducing the risks of adverse time of entry into the markets of shares and bonds”.
“To date, in addition to Aviva Investors, the nine selected foreign asset management companies, which is working on the harmonization and signing of investment agreements. Until after the completion of the ad companies is premature. However, it is proposed to transfer part of the currency portfolio of $2.8 billion ($1.3 billion – under the mandate of global equities and $1.5 billion corporate bonds). To start the process is planned before the end of this year”, – noted in the national Bank.
This probably explains the translation under external management in the amount of approximately $ 300 million. However, exactly who manages these funds has not yet been announced.
Exit from the Russian debt
Money SPSF actively trolling the debt markets and without external control. In October, the pension savings of Kazakhstan citizens purchased government securities Indonesia and the United States. In this case the sold part of the available bonds in Peru, Mexico, Brazil, the Philippines and Russia. In November, the securities continued:
- The net purchase of government securities Indonesia — 738,7 million tenge
- Buy GS Philippines — 1.98 billion
- Net selling of SS Russia — on 60.6 billion
- Selling government securities Mexico — 22.6 billion
- Selling SS Peru — 10.6 billion
As of October 1, the current value of Russian government bonds on the balance of the Fund was 234,1 billion Over the last two months of 2019 were sold securities on 175,5 billion tenge. That is to say that
Kazakhstan actively Pensione out of Russian debt
But us bonds are still in favor. In November repaid the debt securities to 178.6 billion, sold 191,7 billion When it was purchased new for a total amount of 382 billion tenge at 1.56% per annum.
Minus 386,6 million tenge on two deposits
The practice of investment funds of the SAPF in foreign banks. For several months billions are directed to the deposits in different banks at the same on high incomes such contributions do not apply.
“Available funds in foreign currency were housed in short-term deposits of foreign banks with a rating rating not lower than “A-“. While these investments are not strategic to invest and are within the current liquidity management to maintain the yield of pension assets”, — says the national Bank.
In November, maintaining profitability came bobble. For example, was repaid contribution to the Bank of Nova Scotia on 81,94 billion tenge. It was opened in September – was then made 82,18 billion total for the two months in terms of tenge, the Fund has lost of 241.7 million, a Similar situation with Bank of Montreal: volume was 144.9 million more than the redemption (81.9 billion). However, previously, a similar tactic worked: for example, a week in DBS Bank had earned about 290 million tenge.
In November, was also placed a Deposit with Bank of Nova Scotia on 130,4 billion tenge. Considering December the strengthening of the domestic currency, in terms of tenge and it can become unprofitable. The stated interest of 1.91% per annum.
“People” reduced the debt to SAPF
The credibility of the domestic companies ‘ optimism does not suffer. In November repaid was purchased 5 years ago bond “people’s Bank”. The repayment amount 59.9 bln tenge. The rest — about 500 billion, most of which will be repaid in 21-22 years Also saw the repayment on deposits in the same STB 330 million tenge (the Deposit was opened in April 2016). Investment in Kazakhstan’s economy in the past month there was only one.
“Purchased bonds of JSC “agrarian credit Corporation” in the amount of 3.9 billion tenge with a yield of 10.75% per annum in the framework of the mechanism of crediting of priority projects (“economy of simple things”) through the STB RK and JSC “agrarian credit Corporation” in the amount of 600 billion tenge,” — stated in the message of the national Bank.
In October for the same purpose from the pension Fund have been spent 1.65 billion.
There were traditional transactions with the national Bank. In total it was posted and removed deposits of 5.2 trillion tenge. The purchased debt securities on 450,3 billion tenge has been repaid — at 137 billion and in November was purchased by government securities of the government of Kazakhstan 27.8 billion, at 9.4 percent per annum.
The yield is ahead of inflation
Despite the negative moments, was fruitful.
“Yield of pension assets allocated to accounts of depositors (recipients) from the beginning of 2019, made up 6.16%. Thus, as of December 1, 2019, the return on pension assets over the last 12 months (from December 2018 to November 2019) for depositors (recipients) ENPF was 8.13% with an inflation rate of 5.4%. Thus, over the past 12 months real returns on pension assets of ENPF made up 2.73%,” — said in the national Bank.