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Sound investments into your future

Pension fund gnpf 2012 10-01-для инвестора_eng

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Page 1: Pension fund gnpf 2012 10-01-для инвестора_eng

Sound investments into your future

Page 2: Pension fund gnpf 2012 10-01-для инвестора_eng

The Republic of Kazakhstan is a transcontinental country in Central Asia and Eastern Europe, the vast majority of its territory being located in Central Asia. With its territory of 2,727,300 sq km (1,053,000 sq mi) ranked as the 9th largest country in the world, it is also the world's largest landlocked country. Kazakhstan is a member of the CIS.

Capital city – Astana; largest city – Almaty (former capital). National currency – Tenge (KZT).

Country Overview

Page 3: Pension fund gnpf 2012 10-01-для инвестора_eng

Country Overview (continued)

Politics and Economy

The Republic of Kazakhstan

is a unitary state with

presidential regime

Main industry: Oil & Gas

(9th place in the world)

GDP: (Jan-Jun) 2012 – 105.6%

2011 – 107.5%, or $186.2 bn

2010 – 107.0%, or $148.05 bn 2009 – 101.2%, or $115.31 bn 2008 – 103.3%, or $133.44 bn 2007 – 108.9%, or $104.85 bn

Population

Population: 16.8 mln. people Age 0-15 – 10%

Structure 16-62(57) – 64%

(2012) 63(58) & older – 26%

Working population (APFs’ members)

(Feb. 2012): 8.5 mln. People

Average monthly income (Jul. 2012):

USD 712

Retirement age:

men – 63 women – 58

Longevity (2011):

average – 69.01 years

men – 64.23 women – 73.79 Natural population growth rate

increased from 6.22% (2003) to 13.79% (2011)

Page 4: Pension fund gnpf 2012 10-01-для инвестора_eng

Pension System in Kazakhstan

1997 - reform of the pension system in Kazakhstan and establishment of the first “State Accumulative Pension Fund” (Gosudarstvenny Nakopitelny Pensionny Fond) which then became the APF “GNPF”, JSC

New pension system is based on the three pillars:

PAYG pillar, the former Soviet Union heritage based upon the “solidarity of generations” where the 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.

Page 5: Pension fund gnpf 2012 10-01-для инвестора_eng

Currently there are 11 Accumulative Pension Funds (APF) operating in Kazakhstan. The APFs in Kazakhstan are licensed to act also as the Asset Management Companies (AMC). They manage pension assets of their members (contributors), and also have their own assets and capital that are accounted for separately (Chilean model).

Pension assets are accumulated and accounted for based on the Unit-Linked Plan, i.e. the cash value of pension contributions 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: 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

Pension System in Kazakhstan (continued)

Unit-Linked Plan

Accumulation of Pension Assets &

Asset Management

Income Structure

Page 6: Pension fund gnpf 2012 10-01-для инвестора_eng

Pension Market Performance

Pension Assets 20 272 mln. USD (01.10.2012) 3 036 202 mln. KZT

Average annual growth rate for the last 3 years – 18% 

Individual Contributors’ Accounts

Compulsory Voluntary Voluntary Occupational

1998 3 752 386    1999 2 994 513    2000 3 715 535    2001 4 630 205 22 071  2002 5 399 320 25 084  2003 6 164 316 27 364  2004 6 974 437 30 157 2 7642005 7 613 369 32 336 3 2972006 8 537 712 32 978 3 7522007 9 223 712 40 904 3 8482008 9 613 112 41 499 4 0302009* 7 732 128 41 682 4 0762010 7 989 782 39 534 4 0452011 8 137 395 38 318 4 102

01.10.2012 8 360 641 37 943 4 119

USD 1 = KZT 149.77 (average ForEx rate for September 2012)

Average Pension Savings Per 2 413 USD Contributor (01.10.2012) 361 ths. KZT

* Elimination of zero-balance and double accounts

Accumulated Net Investment 4 324 mln. USD Income (01.10.2012) 647 574 mln. KZT

1998

2000

2002

2004

2006

2008

2010

4118

3

0500,000

1,000,0001,500,0002,000,0002,500,0003,000,0003,500,000

0%20%40%60%80%100%120%140%160%

Pension assets, mln. KZT Pension assets growth rate, %

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

41183

0.01 0.02 0.03 0.04 0.05 0.06 0.07 0.08 0.110.13 0.15

0.240.28

0.320.36

Average Pension Savings Per Сontributor, mln. KZT

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

4118

3

0100,000200,000300,000400,000500,000600,000

-20%

0%

20%

40%

60%

80%

Net investment income, mln. KZT Net investment income growth rate, %

Page 7: Pension fund gnpf 2012 10-01-для инвестора_eng

GNPF is the only APF with direct GRK participation through the National Bank’s share

GNPF Shareholder

The National Bank of the Republic of Kazakhstan

100%

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

Page 8: Pension fund gnpf 2012 10-01-для инвестора_eng

  2009 2010 2011 01.10.2012Employees 436 658 823 1313Branches 18 18 18 18

Sales points 53 100 117 119Service centers   2 2 2

GNPF Network

Page 9: Pension fund gnpf 2012 10-01-для инвестора_eng

Pension Assets 3 910 mln. USD (01.10.2012) 585 565 mln. KZTAverage annual growth rate for the last 3 years – 26%

USD 1 = KZT 149.77 (average ForEx rate for September 2012)

Average Pension Savings Per 1 993 USD Contributor (01.10.2012) 298 ths. KZT

 

Contributors

Compulsory VoluntaryVoluntary

professional1998 3 092 3741999 1 697 2922000 1 811 9912001 2 143 1042002 2 299 4162003 2 332 9002004 2 431 1252005 2 302 9662006 2 378 890 42

2007 2 439 137 752008 2 417 306 1022009* 1 742 157 119 52010 1 786 633 143 32011 1 810 993 178 3

01.10.2012 1 962 162 198 3* zero-balance and double accounts were eliminated

GNPF Performance

Accumulated Net Investment 1325mln. USD

Income (01.10.2012) 198 476 mln. KZT

1998199920002001200220032004200520062007200820092010201141183

0100,000200,000300,000400,000500,000600,000700,000

0%10%20%30%40%50%60%70%80%90%

Pension assets, mln. KZT Pension assets growth rate, %

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

41183

0.0000.0500.1000.1500.2000.2500.3000.350

0.01 0.02 0.02 0.03 0.03 0.04 0.04 0.05 0.07 0.08 0.10

0.170.21

0,260.30Average Pension Savings Per Сontributor, mln. KZT

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

201141183

020,00040,00060,00080,000

100,000120,000140,000160,000180,000

0%5%10%15%20%25%30%35%40%45%50%

Net investment income, mln. KZT Net investment income growth rate, %

Page 10: Pension fund gnpf 2012 10-01-для инвестора_eng

  2008 2009 2010 01 Aug.2011Employees 430 436 658 760Branches 18 18 18 18

Agent points 31 53 100 117Service centers     2 2

GNPF Market Share (01.10.2012)

GNPF ranks 2nd among the

Kazakhstan APFs

GNPF; 19% ($3 910 mln)

Pension Assets

GNPF; 23%   (1 962k)

Members

GNPF; 25% ($1325 mln.) 

Accumulated Net Investment Return

Page 11: Pension fund gnpf 2012 10-01-для инвестора_eng

Investment Portfolios (01.10.2012)

Pension Assets $3 910 mln. Pension Assets Moderate Portfolio

Structure, %Pension Assets Conservative Portfolio

Structure, %

GRK Securities41.1%

Foreign Gov. Securities6.5%

IFO Securities1.9%

RK Corporate Bonds15.3%Foreign Cor-

porate Bonds 1.2%

Stocks and Depositary Receipts2.0%

Gold 9.2%

PPN2.4%

Deposits 19.2% REPO and Cash

1.0%

GRK Securities67.5%

Deposits20.74%

REPO and Cash11.88%

Page 12: Pension fund gnpf 2012 10-01-для инвестора_eng

Investment Portfolios (01.10.2012)

Pension Assets $3 910 mln. Pension Assets Moderate Portfolio,

Currency Structure, %

GNPF Own Assets Portfolio $ 156 mln. (all denominated in KZT)

Pension Assets Conservative Portfolio, Currency Structure, %

KZT 100%KZT 73.6 %

USD 22.1%

EUR 0.4%RUB 3.2 %

MYR 0.5 %GBP 0.2 %

GRK Securities51.07 %

Deposits 45.59%

CAsh and REPO 3.35%

Page 13: Pension fund gnpf 2012 10-01-для инвестора_eng

GNPF Basic Financial Indicators

  2009 2010 2011 01.10.2012

 

Equity, mln.            98      14 473             121        17 888     139                20 327    156 23 419

Assets, mln.          101        14 899             125        18 369             146        21 363    162 24 330

Net income, mln.            22          3 215               22          3 291               15    2 154          21 3 144

ROA, % 24.9 19.8 11.3 11

ROE, % 25.5 20.3 10.8 13

EPS              3             370                 3             379    1.7                          248 2.4 362

Page 14: Pension fund gnpf 2012 10-01-для инвестора_eng

Regulation

There are three main prudential regulations established and controlled by the Committee:

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 Firms

K1 - minimum capital requirement

K2 - annual average weighted investment return benchmark for the last 60 months

Limits on pension assets investments

Page 15: Pension fund gnpf 2012 10-01-для инвестора_eng

Foreign Investor: Legal Issues

be a legal entity have a minimum rating as set below:

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

Standard and Poors

Moody's Investors Service

FitchDominion

Bond Rating Service (DBRS)

Japan Credit Rating Agency

(JCR)

Rating and Investment Information

(R&І)

Capital Intelligence

ВВ- Ва3 ВВ- BBL BB- BB- BB-

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:

Page 16: Pension fund gnpf 2012 10-01-для инвестора_eng

THANK YOU

Call us at +7.727.259.7524, or +7.800.080.1177