27 September 2017, Astana. The meeting of the Board of Directors Samruk-Kazyna JSC ('the Fund') has approved the Fund's 2016 annual and sustainability reports, discussed issues related to the investment policy of the Fund, and elected Zhanadil Yernar Beisenuly as a member of the Management Board of the Fund.
Samruk-Kazyna's investment policy reflects the Fund's new role as a strategic holding company and an active investor. Among Samruk-Kazyna's guiding investment principles is to favour investment in assets based in Kazakhstan using a co-investment approach with strategic investors; to invest in accordance with the Yellow Pages Rules; as well as to create sustainable, long-term value. The new investment philosophy of the fund will seek to diversify its portfolio, initiate new growth industries, and create a robust investment framework for monitoring of investments and deliver shareholder value.
Umirzak Shukeyev, CEO of Samruk-Kazyna, commented: "One of the main aims of our investment policy is to introduce a portfolio approach to our investment management. This approach is based on a thorough selection process, setting clear priorities and ensuring the even distribution of funds, and divesting assets in line with the Fund's strategic aims and priorities, as well as market opportunities."
The Fund's annual report states that the value of the Samruk-Kazyna's net assets amounted to over KZT 6.8 tn in 2016 (USD 20.4 bn), a 7% increase year-on-year. The Fund's return on equity increased from 3.3% in 2015 to 5.5% in 2016. Samruk-Kazyna increased state revenues by KZT 610 bn in 2016 in the form of taxes and other payments. Dividends and other payments to the Fund's shareholder amounted to KZT 57 bn.
Consolidated profit attributable to the government in 2016 amounted to KZT 455 bn, 2.8 times higher year-on-year. Samruk-Kazyna's improved performance in its main strategic indicators was achieved through the Fund increasing its revenue base and systematically reducing costs. For example, Samruk-Kazyna has succeeded in reducing operational costs among its portfolio companies through a range of measures aimed at standardising and automating business processes.
Along with the increasing long-term value of Samruk-Kazyna's portfolio companies and the modernisation of Kazakhstan's national economy, one of the Fund's main strategic aims is managing the country's sustainable development. The main theme of Samruk-Kazyna's 2016 Sustainable Development Report is 'On the way to Sustainable Future'. This is the first year in which the report has been compiled; it is a comprehensive document detailing the Fund's sustainable development activities, results of its work in this area in 2016, and plans for the future.
The report was compiled in line with GRI (Global Reporting Initiative) guidelines. Based on internal and external assessments, and with the aim of efficiently managing the GRI's triple criteria, impact on the environment, society and the economy, Samruk-Kazyna has adopted a sustainability concept, including eight sustainable development initiatives. These are: financial sustainability; efficient corporate governance and an improved risk culture; responsible investment; an effective procurement system; a high level of H&S culture; high ethics standards and anti-corruption efforts; employee development and a strong business reputation and a high level of transparency.
Zhanadil Yernar Beisenuly, elected as a member of the Management Board, at the moment holds the position of the Financial Controller of Samruk-Kazyna JSC, and acts as Managing Director for Finance and Operations.