6.5% Member Bonus – Post Courier


More than 600,000 members of the National Pension Fund will benefit from an interest rate of 6.5% over the weekend.

Nasfund announced the 2021 annual results yesterday indicating that the fund’s resilience in difficult times has enabled it to achieve a net profit of K363 million and an asset value of K5.9 billion.

Chairman Charles Vee said the fund had shown strong resilience in the current economic circumstances to deliver positive results, performing above budget in terms of contributions, cash income and investment valuation gains , as well as effective cost management on operating expenses.

“I am pleased to inform our members that we continue to meet our investment objective of achieving above-CPI returns over a rolling five-year period, averaging 5.7% compared to an average of the CPI by 4.7% over the same period.

“Over the past five years, your fund has paid out K2.3 billion in pension entitlements to members,” he said.

Chief executive Ian Tarutia said the drivers that drove these numbers have long been cash.

“The fund’s portfolio is mainly fueled by cash.

“The main contributors have been our interest in government forms, treasury bills and of course BSP is a significant contributor and we were fortunate that at the end of last year we had contributions from our assessments on our portfolio of listed and unlisted equities…” he said. .

“The cash itself is around K423m against the budget of K407m.

“It’s just cash but earns interest on dividend payments.”

He said that the fund was able to experience a positive net upside in its valuation movements with K72 million, compared to 2020, the fund actually recorded valuation losses of K58 million.

“Of course there is careful management to keep an eye on operating costs and come back and as you all know we have been operating through the difficult times brought on by COVID.

“There is a lot of spending around what is essential in the business and what we need to do to continue to provide services to our members and that was K64 million in the K72 million budget of savings in managing your funds,” he said. .

Mr Tarutia said for employer contributions, the fund received another record of K589 million against K574 million which was itself a record in 2020.

“It was a nice result and what we had no direct influence on was wealth management, whether it was withdrawals.

“We have had a period of time, especially since 2020, where many trading houses have had to readjust their operations, reassess their workforce and many of our employees, who are members of this fund, have had to be terminated due to unrelated circumstances. of their will. control.”

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