“Samruk-Kazyna” SWF” JSC Board of Directors approved the Fund's Development Plan for 2021-2025. This was announced during the briefing by Lyazzat Borankulova, Managing Director for Strategic Development of “Samruk-Kazyna” SWF” JSC.
We would like to remind that Akhmetzhan Yesimov, the head of the Fund, presented the Concept of transforming the Fund into an investment holding company to the Council for the Fund Management chaired by the First President – Yelbasy on November 13. As part of the Concept, the Fund has identified key goals in the updated Development Strategy of the Fund until 2028. The main one is the transition of the Samruk-Kazyna Fund to a new operation mode as an investment holding company in the medium term, in a manner similar to leading sovereign wealth funds.
So, according to L. Borankulova, the main objectives of the Fund's Development Plan for the next five years will be to ensure financial stability and stability, maintain a sufficient level of liquidity of the headquarters and portfolio companies of the Fund.
L. Borankulova highlighted that in 2021 the Fund will begin active transformation of the Fund into an investment holding company. To ensure the growth of the new portfolio, the Fund will continue to work on the formation of the Fund for Future Generations, as well as begin making direct investments on the principles of co-investment.
According to her, this will enable to start building up commercial assets in the Fund's portfolio. Thus, the Fund will focus on continuing the optimization and restructuring of the portfolio with a full transition to active management of the Fund's investment portfolio by 2024.
L. Borankulova noted that the Fund will begin to actively invest already from 2021. At present, the Fund has identified 12 priority sectors, including information technology, infrastructure construction, green energy, chemical industry, healthcare, mechanical engineering, logistics, agriculture, mining, research and development, and etc. This list is not exhaustive and will be updated annually as global and regional trends and market changes.
According to L. Borankulova, the global crisis has affected the financial performance of the Fund's group. However, Samruk-Kazyna expects to complete 2020 with actual figures well above the initial plans.
“Regardless of the prevailing external factors, in 2021 the key strategic KPI of the company’s group are improving in comparison with the current year estimate. The value of the Fund's net assets in 2021 will increase by 653 bn. tenge and will amount to 14 trn. tenge. The average annual growth rate for the last 6 years is 8.2%, for the last 10 years - 9.1%. The expected growth exceeds the goals of the strategy, which were approved at the level of 8%, ”L. Borankulova said.
It is also expected that the Fund's net asset value will increase by 6.9 trn. tenge by 2025 and will amount to 21 trn. tenge, and the Fund's net income in 2021 will reach 523 bn. tenge, which is 22% higher than the current year's estimate. Over the next 4 years, it is expected to achieve net income in the total amount of 6.2 trn.tenge is planned. Indicator of effectiveness of the capital employed is expected to be at the level of 4.7%, with an improvement by 2025 to the level of 9.1%.
Thus, the Development Plan approved by the Board of Directors fully complies with and supports the implementation of the Fund's development strategy until 2028. Moreover, the Fund's group in 2021 will continue the systematic work that has commenced at the beginning of this year to control the level of expenditures and capital investments.
Reference:
“Sovereign Wealth Fund “Samruk-Kazyna” JSC is a Fund, the sole shareholder of which is the Government of the Republic of Kazakhstan. The fund was established in 2008 by the Decree of the President of the Republic of Kazakhstan and is a commercial structure - an investment holding, the mission of which is to improve the national welfare of the Republic of Kazakhstan and ensure long-term sustainability for future generations. Samruk-Kazyna Fund pursues its mission by implementing its strategic goals and four strategic initiatives, such as increasing the profitability of companies, optimizing the portfolio structure, diversifying income and corporate governance and sustainable development. The Fund's assets amount to about 67 bn. USD. “Samruk-Kazyna JSC group of company comprises enterprises of the oil and gas and transport and logistics sectors, chemical and nuclear industries, mining and metallurgical complex, and power industry