Things are looking good at the National Social Security Fund (NSSF) just two months after the exit of the MD, Mr Richard Byarugaba, whose contract expired late last month and company secretary, Mr David Nambale.
This week, it was revealed a 26.5 percent increase in operating profit for the half year ending December 31, 2013, as a result of better returns on its investments and better cost management, according to its latest transparency statement.
NSSF’s profit for the six months 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 UShs3.1 trillion at the same time last year.
Over 83 percent 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, Geraldine Ssali Busuulwa attributed the stellar 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.
During the period under review, NSSF interest income from Fixed Income investments grew to Shs 213.3 billion from Shs 178.5 billion in the first six of financial year 2012/2013.
NSSF paid Shs 91 billion in benefits to qualifying members, compared to Shs 69 billion over the same period the previous Financial Year. The turnaround time for payment of benefits now stands at 10 days.
Contributions collected from members increased to Shs 300 billion compared to she 250 billion over the same period the previous year due to improved employer compliance.
Over the last three years, the Fund has reportedly doubled its assets from shs1.7 trillion in the financial year 2010/11 to shs3.4 trillion in 2012/13. Up to Shs2.8 trillion of the fund is currently held in fixed income securities.