GIS - 17 June, 2013: The portfolio of investment as regards the National Pensions Fund (NPF) and the National Savings Fund (NSF) amounted to over Rs 84 billion and Rs 16 billion respectively at end 2012. Both Funds have registered combined assets of an equivalent of Rs 100 billion. At the same period last year, the market value of the NPF portfolio totaled around Rs 74 billion while that of the NSF approximately Rs 14 billion. For the period December 2011 to December 2012, the Funds in the NPF and NSF schemes increased by Rs 9.3 billion and Rs 2.1 billion respectively.
These figures were released on June 14 in Port Louis by the NPF-NSF Investment Committee which is a tripartite body comprising representatives of Government, employers and employees. The Committee welcomed the positive returns registered by both Funds for the year 2012 and noted that performance has been good across the spectrum of asset classes where the overall returns were dominated by the substantial holdings in local fixed income instruments, especially Government of Mauritius Bonds and Treasury Notes in addition to foreign currencies deposits.
The Committee noted that both funds have registered positive returns with +10.2% for NPF and +7.2% for NSF representing a return over Consumer Price Index of +6.6% and +4.1% for NPF and NSF respectively. The performance targets for NSF were above target while that of the NPF was slightly below target but higher than the benchmark, which according to the Committee is quite commendable bearing in mind the recent low yield environment and volatile stock prices over the last five years.
Presently, the portfolio of the NPF is well diversified with international exposure of 19.2% and Equity exposure at 21.4%. For the year 2012, the NPF made a net investment of around Rs 1.3 billion while adding nearly Rs 400 million of long term Government bonds to its portfolio and an additional investment of about Rs 700 million in various foreign funds. The NPF also bought Rs 640 million of inflation-linked bonds and the return on Mauritian Government Securities for 2012 amounted to 8.9%. It also invested Rs 450 million in secured five year fixed rate notes issued by Omnicane Ltd. The Committee also observed that the NPF has good exposure to the banking sector and that exposure to equities and alternative investments could be increased over time given the current financial situation and future projections.
As for the NSF, for 2012, the return on Mauritian Government securities amounted to 6.97% and an investment of Rs 150 million was made in secured five year fixed rate notes issued by Omnicane Ltd. As regards foreign investments, the NSF recorded a performance of 18.2% and 18.5% for investment in local equity portfolio, which the Committee noted to be a good performance.
As regards investment in local property, the Ebène buildings held by NPF generated a return of 5.5% and the investment committee is examining other options for the NPF to property investments abroad.
Government Information Service, Prime Minister’s Office, Level 6, New Government Centre, Port Louis, Mauritius. Email: firstname.lastname@example.org Website:http://gis.gov.mu