Kazhakstan

This market experienced a slowdown in privatization and currency devaluation. The absence of laws to protect the investor is accompanied by poor law enforcement, which stems from government corruption. It is difficult dealing with a registrar's office to have securities transferred even though the securities are dematerialized at a central depository.

A custodian encourages investors to be very proactive on a number of fronts:

• Evaluate country risk
• Know your counterparty
• Monitor cash balances to ensure timely repatriation and protect against falling currency
• Know the laws governing investments and the rights of the investor.

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