NSSF defies market turbulence to pay members 12.3pc
KAMPALA, SEPTEMBER 30 – Ugandan finance minister Matia Kasaija today announced a 12.3pc return on members’ savings for fiscal 2015, some 0.7pc below the rate for 2014 but well above the 10 year average for inflation officials said.
Revenue rose 21pc to Ushs 708bn with profit after tax homing in at Ushs491bn as assets grew 18pc to tip the scales at Ushs 6.6 trillion. Member contributions added Ushs 780 billion to the tally. Yields on government paper improved across all maturities, settling at just over 17pc.
The results which belie turbulent markets and sliding currencies in the Fund’s major investment markets comes on the back of continuing progress in cost suppression at the fund.
“Our expenses ratio improved from 1.33pc in fiscal 2014/15 to 1.3pc in 2015/16,” Chief Executive Richard Byarugaba explained adding that this was better than the cost to income ratio at similar sized funds in many parts of the world.
Kasaija he was satisfied with the result given the NSSF’s operating environment during the year. The Uganda Securities Exchange declined 14.5pc, Nairobi Stock Exchange 15pc and the DSE by 9pc.
“The rate is above the 10 year average rate inflation, now at the 8.85pc against which the Fund rates itself meaning that NSSF is indeed growing the value of its members’ savings,” he said.