OREANDA-NEWS. May 18, 2011. Reorganization of APF "UlarUmit" (hereinafter – the Fund) through joining with APF "BTA Kazakhstan" resulted in market share increase up to 20% in pension sector of financial services market within the country.

As a result of merger of two large pension funds, APF “UlarUmit” has got number of advantages which will significantly impact on its further development. Thus, enlarged Fund holds 2nd position by size of pension assets (more than 441 bln. tenge) and by number of customers (more than 1 866 thousand people). The Fund’s equity capital exceeds 13 bln. tenge.

State participation in the capital of the Fund provided by BTA Bank JSC, the largest shareholder of the Fund, represents one of the main advantages of the Fund. State -owned BTA Bank is controlled by Samruk-Kazyna JSC. Another advantage is represented by balanced investment portfolio, extensive regional network with more than 140 representative offices along the country and professional team with experience in effective management of investment portfolio during high volatilities in the market.

The Fund plans to increase nominal profitability of investment portfolio by the end of 2011. Predicted growth of nominal profitability is based on optimistic macroeconomic forecasts and also on updated strategy of APF “UlarUmit”, which considers increase of efficiency of investment asset management.

Thorough revaluation of investment portfolios will contribute to stable growth of the Fund’s portfolio. As a result of this work, financial instruments of APF were set to meet market requirements and impact from securities by defaulted issuers on portfolio profitability was completely excluded. In future, the Fund plans to stick to single recording policy in valuation o its financial instruments. At the same time, reserves created on papers of those issuers experiencing difficulties may act as a source of additional income in future.

Share of risky assets in current value of pension assets was reduced by two times.

As of today, the Fund’s portfolio posses high liquidity and comprises of high-rated securities diversified by countries, currencies and sectors. State securities are represented with 33.5% in the portfolio, more than 90% of which have profitability bound with inflation rate, which secures portfolio from potential risks. Approximately 10% of the Fund’s portfolio is invested in high-liquid papers of foreign companies with high growth potential. Around 30% is invested in corporate securities, which have profitability rate higher that inflation rate 11% of the portfolio is invested in common shares and depositary receipts of local issuers, more than 5% are invested in highly rated papers of foreign issuers and approximately 4.6% - in banking deposits.

Boasting with one of the highest liquidity in the market (up to 40 bln. tenge), Fund is ready to utilize this funds through investing local economy.

Thanks to merged portfolio, which includes number of various financial instruments, the Fund is able to form multiportfolio packages and provide depositors with wider range of investment decisions.

"UlarUmit" intends to continue charging commission fee according to fair measurement depending on investment income earned by depositor, which is unique on the pension market today.

The Fund is plans to strengthen and maintain market positions by increasing service quality and expansion of regional network. In near future, “UlarUmit” APF plans to extend its presence in Temirtau, Ekibastuz and Aksai.