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RESOLUTION OF BOARD OF NATIONAL BANK OF THE REPUBLIC OF KAZAKHSTAN

of July 25, 2006 No. 65

About approval of Rules of implementation of investment transactions of National fund of the Republic of Kazakhstan

(as amended on 21-04-2020)

For the purpose of ensuring efficiency of trust management of National fund of the Republic of Kazakhstan, and also according to the Law of the Republic of Kazakhstan "About National Bank of the Republic of Kazakhstan" and the order of the Government of the Republic of Kazakhstan of May 18, 2001 "About the agreement on trust management of National fund of the Republic of Kazakhstan" the Board of National Bank of the Republic of Kazakhstan DECIDES: No. 655

1. Approve the enclosed Rules of implementation of investment transactions of National fund of the Republic of Kazakhstan.

2. This resolution becomes effective since October 1, 2006.

3. From the date of enforcement of this resolution to recognize invalid regulatory legal acts of National Bank of the Republic of Kazakhstan, according to appendix to this resolution.

4. To department of monetary transactions (Gerasimenko Yu. V.):

1) together with Legal department (Sharipov S. B.) to take measures to state registration in the Ministry of Justice of the Republic of Kazakhstan of this resolution;

2) in five-day time from the date of state registration in the Ministry of Justice of the Republic of Kazakhstan to bring this resolution to the attention of the Ministry of Finance of the Republic of Kazakhstan.

5. To impose control of execution of this resolution on the vice-chairman of National Bank of the Republic of Kazakhstan Sartbayev M. M.

Chairman of National Bank

A. Saydenov

It is approved

Ministry of Finance of the Republic of Kazakhstan

 

Approved by the Resolution of Board of National Bank of the Republic of Kazakhstan of July 25, 2006 No. 65

Rules of implementation of investment transactions of National fund of the Republic of Kazakhstan

Chapter 1. General provisions

1. These rules are developed according to the Law of the Republic of Kazakhstan of March 30, 1995 "About National Bank of the Republic of Kazakhstan" and the order of the Government of the Republic of Kazakhstan of May 18, 2001 No. 655 "About the agreement on trust management of National fund of the Republic of Kazakhstan" and establish procedure National Bank of the Republic of Kazakhstan (further - National Bank) investment transactions in case of trust management of National fund of the Republic of Kazakhstan (further - Fund).

2. Main objectives of implementation by National Bank of investment transactions in case of trust management of Fund are:

1) safety of assets of Fund;

2) maintenance of sufficient level of liquidity of assets of Fund;

3) ensuring rather high level of profitability of assets of Fund in the long term in case of moderate risk level.

In the long term provides rather high level of profitability of assets of Fund short-term fluctuations of profitability.

3. Activities for trust management of Fund include acquisition of services of Bloomberg of L.P., Reuters (Eastern Europe) of Limited and other information systems providing data on the financial markets.

4. Provisions of these rules are discussed by Board of National Bank at least once a year.

Chapter 2. Basic concepts

5. Active asset management is type of management in case of which value of variability of variation of portfolio return (tracking error) exceeds 2 (two) percent.

6. Base currency - the currency used for the purposes of assessment of profitability of asset management of Fund.

7. Yield to maturity of security (portfolio) - the security yield (briefcase) with the fixed income expressed as a percentage and received in case of purchase and storage of security (portfolio) before her (his) repayment. Calculation of yield to maturity of security (portfolio) is based on coupon rate, repayment period and market value of security (portfolio). When calculating it is supposed that the coupon payments are reinvested on the interest rate equal to yield to maturity of security (portfolio).

8. Security duration with the fixed income (portfolio) the indicator specifying how approximately the cost of security (portfolio) in case of increase/decrease of yield to repayment of security (portfolio) will go down/will increase.

9. Variability of variation of profitability (tracking error) - the main indicator of market risk of portfolio in relation to benchmark portfolio reflecting variability of variation of portfolio return from profitability of benchmark portfolio (tracking error).

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