NFRKNational Fund of the Republic of Kazakhstan
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Reflecting the distinct liquidity needs implied by the fund's roles (financing current development expenditures versus accumulating long-term savings), the NFRK maintains stabilization and savings portfolios with different investment strategies.
The NFRK provides little information on its operations to the public.
3) Kalyuzhnova (2010) discusses recent developments at the NFRK in detail.
During the first 5 years of its existence the NFRK has accumulated extra payments made to the republic's budget from major companies operating in the raw materials (oil and gas) sector.
From its conception, the investment strategy of the NFRK was based on the rules governing the foreign exchange reserves of the National Bank of Kazakhstan: eligible assets were low-risk interest-bearing securities (AA-grade or better).
The main objective for the management of both NFRK and SOFAZ is defined to be the investment of capital in such a way that the international purchasing power of the Funds is maximised, taking into account an acceptable level of risk.
Broader recommendation for Kazakhstan to increase its degree of transparency include consolidation of the treasury reports and better integration of all fiscal costs and risks associated with extra budgeting operations (including NFRK itself).
Recently, in order to establish a long-term strategy for the use and accumulation of oil revenues the rules governing the NFRK have been redesigned.
The new NFRK rules will no doubt enhance the transparency of hydrocarbon revenues and their use.
Although the NFRK has a website, it only gives information on the total National Fund assets, broken down by portfolio.
By 2003, Kazakhstan saved 63% of its oil-windfall in the NFRK, which by all standards demonstrates a remarkably prudent fiscal stance and gives rise to hope for cautious optimism for the future.
To date it is difficult to confirm whether SOFAZ and NFRK have gained public support.