National

NSSF profit soars as assets increase to Shs3.9 trillion

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By Dorothy Nakaweesi

Posted  Tuesday, March 4   2014 at  02:00

In Summary

Savers should expect a little more interest but this will be subject to the financial year performance.

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Kampala

People saving with the National Social Security Fund (NSSF) should expect a little more interest at the end of the financial year as the fund registers a 26.5 per cent increase in operating profit.

Latest information shows that for the half year ending December 31, 2013, the Nssf’s profit increased to Shs156 billion from Shs123.3 billion during the same period in the Financial Year 2012/13.

Over the same period, NSSF’s total assets grew to Shs3.9 trillion, compared to Shs3.1 trillion at the same time last year.

Reacting to this performance, Nssf chairman Ivan Kyayonka said: “This was key performance and to savers, it means they will get a little more interest but this will be subject to how the fund performs at the end of the financial year”.

At least 83 per cent of the Fund’s total investments are in fixed income securities, while the rest is held in real estate and listed companies such as Umeme, Stanbic Bank, Housing Finance Bank, and Safaricom, among others.

The Fund’s Acting Managing Director, Ms Geraldine Ssali Busuulwa, attributed this performance to better returns from strategic allocation of Funds in the lucrative investments and improved cost management by the Fund.

“NSSF’s improved half year performance is a result of improved asset class mix, coupled with a strategic rebalancing of investments from short term commercial paper to medium and long term government paper,” she said.

She added that this result could be even better if the Fund had a quicker turn around in the area of Equity investments within the East African region.

dnakaweesi@ug.nationmedia.com