ALMATY, Aug 20 (Reuters) - Kazakhstan's National Fund,

which accumulates excess profits from its oil industry, plans to

invest up to $1 billion in U.S. Treasury Inflation-Protected

Securities (TIPS), a spokesperson from the National Bank of

Kazakhstan told Reuters on Wednesday.

The central bank, which manages the fund, said the move

would bolster the fund's profitability and diversification.

"The acquisition of TIPS will be carried out within the

framework of the portfolio of government securities of developed

countries in the amount of up to $1 billion, which is about 2%

of the savings portfolio of the National Fund," the spokesperson

said.

According to the central bank's plan, the portfolio of

developed countries' bonds will consist of fixed-interest bonds

and inflation-indexed government bonds.

The National Fund subsidises Kazakhstan's budget and

supports the tenge via sales of foreign currency.

As of this month, the fund contains $60.6 billion.