Resolution of the Board of the National Bank of Kazakhstan dated October 20, 2022 No. 86 on Amendments to the Rules for Investment Operations of the National Fund

REPUBLICAN STATE INSTITUTION
"NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN"		DECISION OF THE BOARD No. 86 Astana city

Registered in the Ministry of Justice of the Republic of Kazakhstan on October 28, 2022 under No. 30351

On amendments and additions to the Decision of the Board of the National Bank of the Republic of Kazakhstan of July 25, 2006 No. 65 "On Approval of the Rules for Carrying Out Investment Operations of the National Fund of the Republic of Kazakhstan"

The Board of the National Bank of the Republic of Kazakhstan DECIDES:

1. Make the following amendments and additions to the Decision of the Board of the National Bank of the Republic of Kazakhstan of July 25, 2006 No. 65 "On Approval of the Rules for Carrying Out Investment Operations of the National Fund of the Republic of Kazakhstan" (registered in the Registry of State Registration of Normative Legal Acts under No. 4361):

in the Rules for Carrying Out Investment Operations of the National Fund of the Republic of Kazakhstan, approved by said decision:

add paragraph 26-8 with the following content:

"26-8. Transit Portfolio – a temporary portfolio formed from Fund assets previously acquired into the Savings Portfolio, for which a discrepancy with the parameters of the Rules subsequently arose due to circumstances (natural disasters, military actions, emergency situations) preventing the fulfillment of obligations regarding payments on these assets.";

add paragraph 35-6 with the following content:

"35-6. Restrictions provided for in the Rules for Fund portfolios do not apply to assets placed in the transit portfolio.";

rephrase part one of paragraph 36 as follows:

"36. The benchmark portfolio for the Stabilization Portfolio is the composition of the ICE BofA US 6-Month Treasury Bill Index. This index is an index of ICE Data Indices, consisting of U.S. Treasury bills with a maturity of up to 6 (six) months.";

add paragraph 44-2 with the following content:

"44-2. Creation of a transit portfolio is permitted within the structure of the Savings Portfolio.

Funding the transit portfolio through the purchase of securities is prohibited.

Achieving excess return is not the goal of managing the transit portfolio.";

rephrase part one of paragraph 48 as follows:

"48. The benchmark portfolio for the portfolio of government bonds of developed countries is a composite index of bonds of developed countries, consisting of the following indexes of highly liquid securities:

ICE BofA 1-10 Year US Treasury Index (G5O2) – 62.5 (sixty-two and five-tenths) percent;

ICE Q1AR Custom Index (Q1AR) – 12.5 (twelve and five-tenths) percent;

ICE BofA 1-10 Year UK Gilt Index (G5L0) – 10 (ten) percent;

ICE BofA 1-10 Year Japan Government Index (G5Y0) – 5 (five) percent;

ICE BofA 1-10 Year Australia Government Index (G5T0) – 5 (five) percent;

ICE BofA 1-10 Year Canada Government Index (G5C0) – 5 (five) percent.";

rephrase the second paragraph of paragraph 51-2 as follows:

"portfolio of government bonds of developing countries using a benchmark portfolio with the ICE BofA Q34A Custom Index, excluding bonds of countries with a share of oil in exports exceeding 80 (eighty) percent;";

rephrase paragraph 51-10 as follows:

"51-10. The benchmark portfolio for the corporate bonds portfolio is the ICE BofA Q35A Custom Index, excluding securities issued by companies with high levels of greenhouse gas emissions, coal mining companies, and tobacco manufacturers.";

rephrase Appendix 3-1 in accordance with the edition according to the appendix to this decision.

2. The Monetary Operations Department (Tursunkhanov N.A.) shall ensure, in the manner established by the legislation of the Republic of Kazakhstan:

1) together with the Legal Department (Kasenov A.S.) the state registration of this decision[1] in the Ministry of Justice of the Republic of Kazakhstan;

2) publication of this decision on the official Internet resource of the National Bank of the Republic of Kazakhstan after its official publication;

3) within ten working days after the state registration of this decision, submission to the Legal Department of information on the execution of measures provided for in sub-item 2) of this paragraph.

3. Control over the execution of this decision shall be entrusted to the Deputy Chairman of the National Bank of the Republic of Kazakhstan overseeing the relevant area, Moldabekova A.M.

4. This decision[2] shall enter into force upon the expiration of ten calendar days after the day of its first official publication.

Chairman	G.O. Pirmatov

APPROVED

Ministry of Finance
Republic of Kazakhstan

Correct:
Chief Specialist-Secretary of the Board Zh. Mukhambetova

Appendix
to the Decision of the Board of the National Bank of the Republic of Kazakhstan of October 20, 2022 No. 86

Appendix 3-1
to the Rules for Carrying Out
Investment Operations of the National Fund of the Republic of Kazakhstan

Transition Plan

	Target shares of portfolios in the composition of the savings portfolio at the end of each year (in percent)
Year	Bonds			Developed Country Equities	Alternative Instruments	Gold
Government Bonds		Corporate Bonds
Developed Countries	Developing Countries
No.	1	2	3	4	5	6	7
1	2019	63	5	3	22 and above	up to 5	up to 3
2	2020	63	5	3	22 and above	up to 4-5
3	2021	47	12	6	26 and above	up to 5
4	2022	29 and above	up to 21	up to 10	30 and above

1. On amendments and additions to the Decision of the Board of the National Bank of the Republic of Kazakhstan

   of July 25, 2006 No. 65 "On Approval of the Rules for Carrying Out Investment Operations of the National Fund of the Republic of Kazakhstan" ↑

2. On amendments and additions to the Decision of the Board of the National Bank of the Republic of Kazakhstan

   of July 25, 2006 No. 65 "On Approval of the Rules for Carrying Out Investment Operations of the National Fund of the Republic of Kazakhstan" ↑