Article 23. Fiduciary obligations of the Law on Endowment Funds and Endowment Funds (Endowments)

Home / Codes / Article 23. Fiduciary obligations of the Law on Endowment Funds and Endowment Funds (Endowments)

1. Persons responsible for managing and investing the assets of the endowment fund (endowment capital) must manage and invest the assets of the endowment fund (endowment capital) in accordance with their fiduciary obligations.

2. Taking into account the intentions and legitimate interests of depositors and donors expressed in the endowment agreement, the management company (fiduciary) When managing and investing assets of an endowment fund (endowment capital), it must take into account the goals of the endowment fund and the legitimate interests of the beneficiary.

3. The management company (fiduciary) is obliged to avoid conflicts of interest, as well as violations of fiduciary obligations when managing and investing assets of the endowment fund (endowment capital) and to take measures to prevent and resolve them.

4. When managing and investing assets of the endowment fund (endowment capital), officials of the endowment fund and the management company (fiduciary):

1) are obliged to take measures to ensure control over the effective management and investment of assets of the endowment fund (endowment capital);

2) is not entitled to use the assets of the endowment fund (endowment capital) for personal or corporate purposes of members of the Board of Trustees, depositors and (or) other persons associated with the endowment fund.

5. The Endowment Fund may manage two or more endowment funds (endowments).

6. The fiduciary obligations of the endowment fund officials in managing and investing the assets of the endowment fund (endowment capital) and spending its investment income and donations include compliance with the rules of professional ethics for managing and investing the assets of the endowment fund (endowment capital).

The rules of professional ethics for managing and investing assets of the endowment fund (endowment capital) are adopted by the Board of Trustees and should take into account the following factors:

1) safety of the endowment fund (endowment capital);

2) the ownership right established by the agreements of the target contribution and trust management, which is of value to the depositor;

3) expected returns on the management and investment of assets of the endowment fund (endowment capital), total income and investment gains;

4) the impact of inflation or deflation;

5) the value of each investment or financial transaction in the overall investment portfolio;

6) expected tax consequences of investment decisions or strategies;

7) General economic conditions.

Management and investment decisions regarding an individual asset of the endowment fund (endowment capital) should be made taking into account the investment portfolio of the endowment fund (endowment capital) as a whole and as part of the overall investment declaration.

The endowment fund must diversify the assets of the endowment fund (endowment capital), except in cases where the Board of Trustees decides that, due to special circumstances, the goals of the endowment fund (endowment capital) are achieved without diversification.

Persons authorized to manage and invest assets of the endowment fund (endowment capital) in the event of a conflict of interest are required to act solely in the interests of the endowment fund in accordance with the terms of the endowment contribution agreement.

7. In cases of violation by officials of the endowment fund and the management company (fiduciary) of fiduciary obligations, as well as the targeted use of assets of the endowment fund (endowment capital), any interested person has the right to apply to the court for invalidation of the transaction.

8. A person who has intentionally concluded a transaction in violation of fiduciary obligations established by this Law shall not have the right to demand that the transaction be declared invalid if such a demand is caused by selfish motives or the intention to evade responsibility.

The Law of the Republic of Kazakhstan dated June 30, 2025 No. 199-VIII SAM.

This Law regulates public relations that arise during the creation, management and liquidation of endowment funds, the formation, replenishment, and dissolution of endowment funds (endowment funds) and the use of their investment income, and the trust management of assets of endowment funds (endowment funds).

President

Republic of Kazakhstan

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