Citigroup has been appointed by The National Bank of Kazakhstan (NBK) to act as a custodian for a portion of assets amounting to about US$5bn of The National Fund of the Republic of Kazakhstan. It will also act as the securities lending agent bank, providing securities lending for Global Tactical Assets Allocation (GTAA) which is composed of 75% fixed income and 25% equity securities, as well as additional equities portfolios.


Medet Sartbayev, deputy governor at NBK says: “With our fund growing at such a significant rate, we initiated a search for an additional custodian and Citi designed a customised custody and securities lending solution to meet our growing needs. Citi’s global reach, extensive local capabilities and strong credit rating made them a natural partner for us.”


Daniel Connelly, Citigroup’s country officer for Kazakhstan, says: “Citi has been on the ground in Kazakhstan since 1994 and is absolutely committed to our business here. The deal with NBK marks a milestone for Citi in this important market and we look forward to building on our success in the months ahead.”


The National Fund of the Republic of Kazakhstan was established in order to ensure stable social and economic development of the country, accumulate financial resources for future generations and reduce the economy’s susceptibility in relation to unfavourable external factors.


Kazakhstan is considered a model transition economy and of all the post-communist economies is ranked first in foreign direct investment as a percentage of GDP and second only to Hungary in per capita FDI.