The National Fund has two portfolios: stabilization and savings. The National Bank, which manages the fund’s assets, invests them in various instruments, including stocks, bonds, gold and alternative instruments.
«The assets of the stabilization portfolio are primarily invested in money market instruments in developed economies. Meanwhile, assets from the savings portfolio are strategically allocated and diversified across classes, markets and currencies. They encompass stocks from developed markets, gold, alternative instruments, corporate bonds and public bonds from developed and developing countries,» the National Bank said.
Stocks account for 33% of the portfolio, followed by bonds from developed (29%) and developing (20%) countries, corporate bonds (10%), gold (5%) and alternative instruments (3%). As of 2024, the fund’s average yield over the past 18 years (from 2005 to 2022) stood at 2.6%.
The government relies on taxes from the oil industry and proceeds from the sale of public assets (managed by national holding companies) to deposit money into the National Fund. According to current legislation, the fund’s resources must be utilized to secure stable socio-economic development of the country, accumulate funds for future generations, reduce the country’s reliance on unfavorable external factors and diminish dependence on global price fluctuations in state and local budgets.
These funds are allocated to the state budget through guaranteed transfers and via the acquisition of shares in Samruk Kazyna and KazMunayGas (a practice adopted last year). In January 2024, transfers from the National Fund totaled $1.3 billion, while its foreign exchange assets amounted to $59.5 billion, a 0.9% decrease compared to December 2023.
