Samruk-Kazyna JSC has adopted a new Development Strategy for 2018-2028 and updated the Transformation Programme. The document is developed taking into account the experience of leading sovereign funds, such as Temasek (Singapore), Khazanah (Malaysia) and Mubadala (United Arab Emirates), which are commercially focused on operational and investment activities.
Thus, the Fund’s main priority is to improve the national welfare, through the increase in the profitability of portfolio companies.
The Strategy includes three key goals: improvement of the efficiency of companies, efficient portfolio management and sustainable development. These goals will be achieved through the following four strategic initiatives:
The first is to increase the profitability of companies by strengthening the financial sustainability, implementing the Transformation Programme and identifying potential through digitalization, business optimization and organizational structure;
The second is to optimize the portfolio structure. It is planned to complete the Privatisation Programme, revise the portfolio of investment projects and attract strategic partners through the sale of non-strategic assets;
Third is to diversify income aimed at developing private capital through effective co-investment with the Kazakh business and foreign partners;
The fourth is to enhance corporate governance and sustainable development.
Implementation of these goals will allow introducing the Fund’s new structure, strengthening financial stability, increasing investment attractiveness, ensuring effective cash management and asset growth. To fulfill efficiently the tasks above, the Fund's assets portfolio will be restructured.
To date, the Fund's assets represent a complex 5-6 level structure, including 332 companies, thus making management considerably difficult. In accordance with the Comprehensive Privatization Plan, 51 companies will be withdrawn from the structure of the Fund. In order to reinvest the proceeds, it is planned to withdraw from 102 non-core assets.
Thus, the Fund’s structure will be reduced from 332 to 179 companies and will consist of three management levels. As a result of the above measures, the management structure will become more lean.
The new Strategy indicates that the Fund Management Board will carry out the strategic oversight of the international investment portfolio. The advantages of these investments will be the reduction of the participation in the economy, prevention of outflow of local investors, strengthening of the presence at the international level and obtaining benefits in the form of new technologies and knowledge.
According to the new Strategy, social investments will be directed only to the creation of human capital, education and innovation by the example of Temasek and Khazanah funds.
It should be noted that yesterday, on April 19 of this year, the President of the Republic of Kazakhstan Nursultan Nazarbayev approved and adopted the Fund Development Strategy for 2018-2028 and Transformation Programme at the meeting of Samruk-Kazyna Management Board.
In addition, the Head of State gave a positive assessment of the activities aimed at the development of the Fund.