Investments

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Investments

The overall objective of the Fund’s investments is to create value for members by generating competitive returns to provide members and beneficiaries with benefits as required by law.

This is accomplished through a carefully planned and executed long-term investment program that efficiently and effectively allocates and manages the assets of the Fund. This objective is accomplished through carefully planned and executed long term investment programme that efficiently and effectively allocates and manages the Fund’s assets, per the Fund’s Investments Policy.

The Fund is a long-term investor. This long-term investment horizon is because the liabilities, over the long term, are majorly influenced by a relatively young member profile.

The Fund collects members' contributions and invests them judiciously, and pay commensurate benefits to qualifying members. The money collected is maintained on individual member accounts, invested and earns an annual interest depending on the Fund’s return on investments.

On qualification, the member is paid the lump sum amount plus interest computed every year.

Investments Policy Framework

Investment decision making and execution is informed by the NSSF Act, the URBRA Investment Guidelines and the internal Investments Policy. The NSSF Act mandates the Board to determine the Fund’s investments, while the Investments Policy provides a guiding framework for investments of the assets within acceptable risk levels.

Assets Under Management

As at June 30, 2020, the Fund’s Assets Under Management (AUM) stood at Uganda Shillings 13.28 Trillion

Investments Asset Allocation

The Fund invests mainly in 3 asset classes: Fixed Income, Equities (listed and unlisted), and Real Estate.

The current asset class allocation is as follows;

  • Equities 15%

  • Real Estate 7%

  • Fixed Income 78%

This portfolio mix is informed by 3 key factors – the long-term funding needs, the need for diversification and reduction of market risk. The has committed to delicately balance the risk/return trade off.

Asset Classes Composition

1.Fixed Income

The Fixed Income asset class is composed of Treasury Bonds, Corporate Bonds and Corporate Loans.

The composition is dominated by medium to longer- dated instruments, consistent with the Fund’s strategy of matching assets and liability spans.

2.Equities

The Equities portfolio is composed of both listed and unlisted equities, with majority exposure in listed equities by far. The listed equities in East Africa include the following;

Bank_of_BarodaDFCUNew_Vision_LimitedUganda_Clays
CentumSafaricom (KShs)Stanbic BankTanzania Portland Cement
UmemeKCBEquityBank of Kigali
BritamTanzania BreweriesEast African Breweries

Unlisted equities include;

  • TPS

  • Trade & Development Bank

  • Yield Fund (Uganda)

 
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