Pension fund gnpf 2012 11-01 invest-eng

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Pension fund gnpf 2012 11-01 invest-eng

  1. 1. Sound investments into your future
  2. 2. Country OverviewThe Republic of Kazakhstan is a transcontinental country in Central Asia and EasternEurope, the vast majority of its territory being located in Central Asia. With its territory of2,727,300 sq km (1,053,000 sq mi) ranked as the 9th largest country in the world, it is also theworlds largest landlocked country. Kazakhstan is a member of the CIS.Capital city – Astana; largest city – Almaty (former capital). National currency – Tenge (KZT).
  3. 3. Country Overview (continued) Politics and Economy Population Population: 16.8 mln. people Age 0-15 – 10% The Republic of Kazakhstan Structure 16-62(57) – 64% is a unitary state with (2012) 63(58) & older – 26% presidential regime Working population (APFs’ members) (Feb. 2012): 8.5 mln. People Main industry: Oil & Gas Average monthly income (Jul. 2012): (9th place in the world) USD 712 Retirement age: men – 63 women – 58 GDP: Longevity (2011): (Jan-Jun) 2012 – 105.6% 2011 – 107.5%, or $186.2 bn average – 69.01 years 2010 – 107.0%, or $148.05 bn men – 64.23 women – 73.79 2009 – 101.2%, or $115.31 bn Natural population growth rate 2008 – 103.3%, or $133.44 bn 2007 – 108.9%, or $104.85 bn increased from 6.22% (2003) to 13.79% (2011)
  4. 4. Pension System in Kazakhstan1997 - reform of the pension system in Kazakhstan and establishment of the first “StateAccumulative Pension Fund” (Gosudarstvenny Nakopitelny Pensionny Fond) which thenbecame the APF “GNPF”, JSCNew pension system is based on the three pillars: PAYG pillar, the former Soviet Union heritage based upon the “solidarity of generations” where the pillar State budget is a source of pension distributions by means of taxes and other budgetary receipts. Pension distributions amount depends on the employment duration. Currently, this pillar covers those who had been employed for at least six months prior to January 1, 1998. Compulsory defined contributions accumulative pension plan (99.81% of all accumulated pension assets as of 1 Oct 2012). Pension contributions fixed at 10% of the gross monthly income are paid by all employed citizens of Kazakhstan and foreign stateless individuals who established permanent residence in Kazakhstan, to their individual accounts in one of the APFs selected in contributors’ discretion. Contributors have the right to transfer their savings from one APF to another twice a year, but all savings of each member must be kept in one APF at a time. Voluntary accumulative pension plan embracing voluntary and voluntary-occupational pension contributions. This pillar is less developed.
  5. 5. Pension System in Kazakhstan (continued) Currently there are 11 Accumulative Pension Funds (APF) operating in Kazakhstan. The APFs in Kazakhstan are licensed to act also as Accumulation of the Asset Management Companies (AMC). They manage pension Pension Assets & assets of their members (contributors), and also have their ownAsset Management assets and capital that are accounted for separately (Chilean Chilean model). model Pension assets are accumulated and accounted for based on the Unit-Linked Plan Unit-Linked Plan i.e. the cash value of pension contributions Unit- Plan, varies according to the current net asset value of the underlying investment assets. It allows protection and flexibility in investment. The APFs have three income sources sources: Income Structure 1. Monthly commission fee on accumulated pension assets (≤0.05%, GNPF’s current fee is 0.0375%) 2. Monthly commission fee on investments return (≤15%, GNPF’s current fee is 12%) 3. Return from investments of own assets
  6. 6. Pension Market Performance Pension Assets 20 476 mln. USD Individual Contributors’ Accounts (01.11.2012) 3 079 356 mln. KZT Voluntary Compulsory Voluntary Average annual growth rate for the last 3 years – 18% Occupational 1998 3 752 386 Pension assets, mln. KZT Pension assets growth rate, % 1999 2 994 513 2000 3 715 5353,500,000 2001 4 630 205 22 0713,000,000 160% 2002 5 399 320 25 084 140% 2003 6 164 316 27 3642,500,000 120% 2004 6 974 437 30 157 2 7642,000,000 100% 2005 7 613 369 32 336 3 2971,500,000 80% 2006 8 537 712 32 978 3 7521,000,000 60% 2007 9 223 712 40 904 3 848 40% 2008 9 613 112 41 499 4 030 500,000 20% 2009* 7 732 128 41 682 4 076 0 0% 2010 7 989 782 39 534 4 045 2011 8 137 395 38 318 4 102 01.11.2012 8 389 053 37 894 4 117 * Elimination of zero-balance and double accounts Average Pension Savings Per 2 429 USD Accumulated Net Investment 4 354 mln. USD Contributor (01.11.2012) 365 ths. KZT Income (01.11.2012) 654 849 mln. KZT 0.37 Net investment income, mln. KZT Net investment income growth rate, % 0.32 Average Pension Savings Per Сontributor, mln. KZT 0.28 700,000 80% 0.24 70% 600,000 60% 500,000 50% 0.13 0.15 400,000 40% 0.11 30% 0.08 300,000 20% 0.06 0.07 0.03 0.04 0.05 200,000 10% 0.01 0.02 100,000 0% -10% 0 -20% USD 1 = KZT 150.39 (average ForEx rate for October 2012)
  7. 7. GNPF Shareholder The National Bank of the Republic of Kazakhstan 100% 100% GNPF is the only APF with direct GRK participation through the National Bank’s share NBRK intends to privatize GNPF and, therefore, is looking for a strategic investor that will acquire the control stock and help to further improve the Fund’s already strong position by: improving the Fund’s corporate governance; refining the existing risk management system; bringing in know-how in investing pension assets; and providing access to international capital markets
  8. 8. GNPF Network 2009 2010 2011 01.11.2012 Employees 436 658 823 1313 Branches 18 18 18 18 Sales points 53 100 117 119 Service centers 2 2 2
  9. 9. GNPF Performance Pension Assets 3 952 mln. USD Contributors (01.11.2012) 594 331 mln. KZT Voluntary Compulsory Voluntary professional Average annual growth rate for the last 3 years – 27% 1998 3 092 374 Pension assets, mln. KZT Pension assets growth rate, % 1999 1 697 292 2000 1 811 991700,000 90% 2001 2 143 104600,000 80% 2002 2 299 416500,000 70% 2003 2 332 900 60% 2004 2 431 125400,000 50% 2005 2 302 966300,000 40% 2006 2 378 890 42200,000 30% 20% 2007 2 439 137 75100,000 10% 2008 2 417 306 102 0 0% 2009* 1 742 157 119 5 2010 1 786 633 143 3 2011 1 810 993 178 3 01.11.2012 1 932 667 201 3 * zero-balance and double accounts were eliminated Average Pension Savings Per 2 045 USD Accumulated Net Investment 1063 mln. USD Contributor (01.11.2012) 307 ths. KZT Income (01.11.2012) 159 915 mln. KZT0.350 0.31 Net investment income, mln. KZT Net investment income growth rate, % Average Pension Savings Per Сontributor, mln. KZT 0,260.300 180,000 50%0.250 0.21 45% 160,000 0.17 140,000 40%0.200 120,000 35%0.150 0.10 30% 0.08 100,0000.100 0.04 0.05 0.07 80,000 25% 0.02 0.03 0.03 0.04 20%0.050 0.01 0.02 60,000 15% 40,000 10%0.000 20,000 5% 0 0% USD 1 = KZT 150.39 (average ForEx rate for October 2012)
  10. 10. GNPF Market Share (01.11.2012) 01.11.2012 2008 2009 2010 01 Aug.2011 Employees 430 436 658 760 Branches 18 18 18 18 Agent points 31 53 100 117Service centers 2 2 Pension Assets GNPF; 19% ($3 952 mln) Accumulated Net Investment Members GNPF; Return 23% GNPF; 24% (1 932k) ($1063 mln.) GNPF ranks 2nd among the Kazakhstan APFs
  11. 11. Investment Portfolios (01.11.2012) 01.11.2012 Pension Assets $3 952 mln. Pension Assets Moderate Portfolio Pension Assets Conservative Portfolio Structure, % Structure, % PPN Deposits REPO and Cash REPO and 2.4% 19.2% 1.1% Cash GRK Securities 8.04% Gold 40.6% 8.5% Deposits 26.3% Stocks and Depositary GRK Receipts Securities 2.0% 65.7% Foreign RK Corporate Foreign Gov. Corporate Bonds Securities Bonds 16.6% IFO Securities 6.5% 1.2% 1.9%
  12. 12. Investment Portfolios (01.11.2012) 01.11.2012 Pension Assets $3 952 mln. Pension Assets Moderate Pension Assets Conservative Portfolio, Currency Structure, % Portfolio, Currency Structure, % MYR RUB 3.3 % 0.5 % EUR 0.3% GBP 0.1 %USD 21.7% KZT 74 % KZT 100% GNPF Own Assets Portfolio $ 153 mln. (all denominated in KZT) CAsh and REPO 4.19% GRK Securities 52.96 % Deposits 42.85%
  13. 13. GNPF Basic Financial Indicators 2009 2010 2011 01.11.2012Equity, mln. 98 14 473 121 17 888 139 20 327 153 23 073Assets, mln. 101 14 899 125 18 369 146 21 363 159 23 949Net income, 22 3 215 22 3 291 15 2 154 21 3 170mln.ROA, % 24.9 19.8 11.3 13ROE, % 25.5 20.3 10.8 13.6EPS 3 370 3 379 1.7 248 2.4 365
  14. 14. Regulation The APFs’ activity is licensed and regulated by the Committee of the National Bank of the Republic of Kazakhstan for Control and Supervision of the Financial Markets and FirmsThere are three main prudential regulations established and controlled by theCommittee: K1 - minimum capital requirement K2 - annual average weighted investment return benchmark for the last 60 months Limits on pension assets investments
  15. 15. Foreign Investor: Legal Issues Per the Law of the Republic of Kazakhstan On the Pension Provisions in the Republic of Kazakhstan (The Law), Article 36: A non-resident investor shall: non- shall be a legal entity have a minimum rating as set below: Rating and Moodys Dominion Japan Credit Standard and Investment Capital Investors Fitch Bond Rating Rating Agency Poors Information Intelligence Service Service (DBRS) (JCR) (R&І) ВВ- Ва3 ВВ- BBL BB- BB- BB- Legal entity registered in an off-shore zone* or the one having affiliates registered in off- shore zones shall not act as a shareholder of any pension fund in Kazakhstan *All restricted off-shore zones are listed in the Appendix A
  16. 16. Call us at +7.727.259.7524, or +7.800.080.1177

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