Samruk-Kazyna

From Kazakhstan Encyclopedia

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Samruk-Kazyna (Template:Lang-kk, Samurıq-Qazına, سامۇرىق-قازىنا; Template:Lang-ru), officially known as the National Welfare Fund "Samruk-Kazyna", is a sovereign wealth fund and joint stock company in Kazakhstan which owns, either in whole or in part, many important companies in the country, including the national rail and postal service, the state oil and gas company KazMunayGas, the state uranium company Kazatomprom, Air Astana, and numerous financial groups. The state is the sole shareholder of the fund.[1] It was created in October 2008 with the merger of two funds, "Samruk" and "Kazyna", by decree of the president of Kazakhstan, Nursultan Nazarbayev. Prime Minister of Kazakhstan Bakhytzhan Sagintayev was appointed as chairman of the board of directors at the National Wealth Fund Samruk-Kazyna JSC by a government resolution dated September 28, 2016.[2] Chief Executive Officer and Chairman of the Management Board of «Samruk-Kazyna» JSC-Umirzak Shukeyev. Independent directors-Alexander Mirtchev, Sir Richard Harry Evans, Nigel John Stapleton.

The fund is a member of the International Forum of Sovereign Wealth Funds[3] and are signed up to the 24 Santiago Principles which are a voluntary standard of best practice endorsed by the members for the management of the Sovereign Wealth Funds.[4]

Organizations owned by Samruk-Kazyna

The following is a partial list of organizations partly or wholly owned by the Samruk-Kazyna fund. The percentage of shares controlled by the fund is indicated in brackets.[5] 576 subsidiaries and associated companies are included in the Fund's group of companies (as of June 30, 2014). Template:Colbegin

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Transformation

How did the Program originate?

In 2013 the Fund carried out a benchmarking (comparison study of the work) of the Fund and its Subsidiaries with foreign peers. Following the study it was determined that international peer companies obtained more income against the same level of invested capital. Have analyzed the data of carried out study the Fund initiated implementation of the Transformation Program in the same way as it was implemented by the Sovereign Wealth Funds of Malaysia Кhazanah Nasiоnal Berhad and Temasek, Singapore.

The initiative was supported by the Head of the State, who in April, 2014 instructed the Management of the Fund to elaborate the business transformation program before the end of September of the current year.

In September, 2014 the Board of Directors of “Samruk-Kazyna” JSC approved the Program supposing transition of the holding from current job model as the administrator of the assets transferred by the State to the role of active investor.

What is the business transformation?

Transformation Program – is a program of large-scale transformations of the Fund’s activities and the activities of controlled portfolio companies.

The Program covers three directions: adding of value of the portfolio companies, change of the portfolio structure and approach of the Fund to the investment activities, redistribution of the authorities and responsibility in the management system of the Fund and its portfolio companies. Implementation of the Program requires significant changes in the activities of the Fund, its portfolio companies as well as in mechanisms of interaction with public authorities involved in the activities of the Fund.

These directions suppose cardinal change of the Investment policy of the Group of the Companies of “Samruk-Kazyna” JSC aiming at implementation of highly profitable projects and diversification of the project portfolio with entry to new industries, to new international markets.

Stages of the Transformation Program implementation

The Transformation of the Fund and its portfolio companies will be carried out step-by-step during more than 5 years:

Stage I – in the Fund and 3 pilot portfolio companies.

Preparation to the implementation of the changes will be carried out in “Samruk-Kazyna” JSC, «Kazakhstan Temir Zholy» JSC, «Kazpost» JSC and «KazMunayGas» NC. The work will start in Q4 2014 and will be completed in 2015.

Stage II – all 12 portfolio companies.

The Fund plans to draw up the first results of the Transformation in 2015-2016. In general, the first stage of the Transformation program will be completed before the end of 2017. Then the Fund will launch the process of continuous improvement in all 12 portfolio companies. Upon completing of active stage of implementation of the Program activities, improvement of the activity on regular basis will be a corporate standard.

Statistics

· Total assets amounted to $100.5 billion.

· 90% of total assets account for eight largest companies

· Equity - $49.3 billion

· Liability - $51.2 billion

· Income at the end of 2013 - $33.4 billion

· Net profit for 2013 - $2.9 billion

· ROE in 2013 - 5.9%

· ROA in 2013 - 2.9%

· The number of employees of the holding - 358 thousand people

Ratings

  • Credit rating on liabilities in foreign currency BBB / A-3
  • Credit rating in local currency BBB + / A-2
  • National scale rating - KzAAA
  • Rating Outlook is «stable»

See also

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Notes

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External links


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