Activity report for first half of 2017 |25 August 2017
Pension fund generates surplus of R36 million
The Seychelles Pension Fund (SPF) has made a total surplus of R36m for the first half of this year from both contributions and investments.
While surplus funds generated for the half year from contributions stand at R16m, those from investments amount to R20m.
This is revealed in the half year report of the activities of the SPF ending June 30, 2017.
According to the SPF total contributions collected for the period up to June 30, 2017 amounted to R118m which was R12m over the budget. Total pension paid for the same period amounted to R102m to 4563 beneficiaries, which was over the budget by R3m and R3.5m more than the same period last year which was for 3919 beneficiaries.
Other income from investments for the half year totaled R84m, a R11m increase from budget, while other administrative and property management expenses were R64m, which is R6m below budget.
Meanwhile, the percentage increase of net contributions after payment of pension has decreased to 11% for the half year compared to previous two years.
Latest investments
1) Equities
SPF purchased an additional 2.3% shares in the Seychelles Commercial Bank increasing its shareholding to 5.7% in the bank.
2) Real Estate
In real estate, SPF added the Anse Boileau Micro Enterprise Project and Eve Island warehouse following their completion during the 1st half of 2017. Eve Island was opened in June 2017 and Anse Boileau Micro Enterprise project will be opened in September 2017.
The total rate of return on investments as at June 30, 2017 was 4%.
3) Government Securities
SPF increased investment in local financial instruments (Treasury Bills) taking advantage of the rising interest rate during the 1st half of the year.
Investments as at June 30, 2017 stands at R1.8 billion.
The total rate of return on investments as at June 30, 2017 was 4%.
The aim of all these investments are to earn a good rate of return to assist in the sustainability of SPF in the long term, to continue paying pension and related benefits. The trend is indicating a higher increasing rate of benefits being paid compared to contributions being received which is increasing at a much reduced rate compared to previous years, due to higher number of pensioners and pension pay-outs, hence the need to increase contribution rates which was done from July 1, 2017 by 1% for employees only . Investments will play a key role in sustaining the SPF in the long run.
Contributed