The volume of AUM of regulated funds in Kazakhstan has nearly doubled since 2020
The number of regulated funds has tripled, reaching 175 by January 2025, with 101 registered under the Astana International Financial Centre (AIFC) jurisdiction, DKnews.kz reports.
These figures are detailed in an analytical report on fund management in Kazakhstan, prepared by experts at the AIFC. The document includes a macroeconomic overview of Kazakhstan, a review of the legal framework governing funds under both national and the AIFC regulations, as well as statistical data and fund types.
«This report provides an analysis of the activities of regulated investment funds in Kazakhstan, alongside the evolving dynamics of the local market, and an overview of the legal and regulatory frameworks at both the national legislative framework and the AIFC’s regulatory environment. The AIFC remains committed to fostering the growth of the investment fund market in Kazakhstan and the wider region. We are building a progressive legal and financial infrastructure that supports fund managers, investors, and financial institutions» Renat Bekturov, Governor of the AIFC, commented
According to the report, as of 1 January 2025, the total assets under management (AUM) of regulated funds in Kazakhstan amounted to USD 1.6 billion. This represents approximately 0.5% of the country’s GDP and is double the figure recorded in 2020. The assets are evenly split between funds under national regulation and those under the AIFC regulation, each accounting for USD 800 million.
Since 2020, the number of regulated funds in the country has tripled, reaching 175 by January 2025. The Astana International Financial Centre has played a significant role in this growth, with 101 out of 175 funds registered within its jurisdiction.
In recent years, both the size and complexity of Kazakhstan’s investment fund market have increased, driven by the emergence of new fund types and market participants. By the end of 2024, over 60% of regulated funds were private equity and hedge funds, offered exclusively to professional clients. These were followed by mutual funds at 15% and REITs at 9%.
The total AUM of private equity and hedge funds exceeded USD 980 million, of which USD 500 million being managed by AIFC-registered funds.
The total AUM of mutual investment funds available to retail investors amounted to USD 190.2 million, roughly 12% of the overall AUM of regulated funds in Kazakhstan (as of 1 January 2025, this fund type is not registered within the AIFC). Despite growth in the number of unit holders in recent years, this figure remains relatively low, highlighting the untapped potential of collective investment segments for retail investors.
Notably, the AIFC jurisdiction has contributed not only to the growth in the number of regulated funds but also to the diversification of fund types in Kazakhstan’s market. For example, the AIFC offers the registration of private equity funds, venture capital funds, REITs, Islamic investment funds, ESG funds, and specialised funds such as commodity, cryptocurrency, fixed income funds, and umbrella funds. In 2024, Astana Financial Services Authority (AFSA) expanded the list of specialised funds to include credit funds, digital asset funds, exchange traded funds, money market funds, and investment token fund or qualified investment token fund. The most popular remain private equity funds, venture capital funds, and REITs.
Funds registered under the AIFC jurisdiction are regulated by the Astana Financial Services Authority (AFSA). Depending on investor classification, the AIFC offers two categories of funds: Non-exempt and Exempt (the latter available only to professional investors). Funds may be established with a focus on specific business sectors or investment objectives.
The AIFC has played a key role in the development of investment funds in Kazakhstan. In addition to fostering growth in AUM and the number of funds, the AIFC jurisdiction provides new authorised firms with market access. Independent fund managers within the AIFC offer a wide range of fund types, supporting the development of the fund industry in Kazakhstan.
The report was prepared with the support of Fonte Capital, OD Consulting, and others. Further details on the differences between funds under national legislation and the AIFC, as well as structural distinctions, can be found via the provided link.
