Seychelles Pension Fund Audited Financial Statements and Annual Reports |01 July 2021
Review of investment policy, strategic asset allocation to boost timely results
With the actuarial review carried out in 2018 to assess the financial sustainability of the Seychelles Pension Fund (SPF), it is obvious that certain measures have to be taken with the support of the government in the medium and long term.
These include reviews of pension contribution rate, review of retirement age and the funding policy as part of the SPF sustainability plans as well as review of investment policy and strategic asset allocation in order for the SPF to achieve higher and timely results.
Plans for the new measures were announced by the chief executive of the SPF Nisreen Abdulmajid on Monday, during a presentation of the SPF Audited Financial Statements and Annual Reports.
Ms Abdulmajid, along with the chairperson of the SPF Board of Trustees Marc Hoareau, handed over a copy of the report to the Minister for Finance, Economic Planning and Trade Naadir Hassan during the presentation held at the Liberty House in Victoria.
This is in accordance with Section 52 (5) of the Seychelles Pension Fund Act 2005 while the annual report 2020 will hereafter be submitted to the National Assembly as required under the Act.
The Financial Statements were prepared under the International Financial Reporting Standards and were audited by the Auditor General who outsourced the audit to Pool and Patel Chartered Accountants.
Also present were Audrey Nanon who is the chief operations officer, along with financial controller Evans Mondon.
According to the annual report, reported surplus for the year before fair value changes and exchanges difference amounted to R66m compared to R48.6m in 2019 representing a 36 percent increase.
Surplus for the year after adjusting fair value and exchange difference amounted to R69m compared to R95m representing a 27% decrease.
This is a result of the net loss incurred in the fair value adjustment amounting to R11.7m. In 2019 it was a gain of R47m.
As for the Net asset value, there has been an increase of 3 percent from R3.3b in 2019 to R3.4b in 2020.
There has been an increase of 6% in the total investment income for 2020 amounting to R200.7m compared to 2019 which was R190m.
Ms Abdulmajid explained that this was due to profits made from the sale of the Ile Perseverance apartments disposed in May 2020, amounting to R17.6m, as well as an increase of 9% in dividend income attained from respective investments on their financial performance generated in 2019 but paid in 2020.
The amount collected in 2020 was R22.3m compared to R20m in 2019.
Otherwise the SPF has seen a decrease in interest income of 10%, rental income of 3% as a result of rental concessions provided to tenants in 2020.
As for occupancy rate for 2020 it was 96.5 %.
In terms of projects, three were completed in 2020, including the Ile Perseverance apartments, Le Chantier Mall (new office block on 4th Floor), and Huteau Lane (conversion of storage space into gym facilities).
In regards to ongoing projects, there are on Ile Du Port, Pointe Au Sel, Le Chantier Mall new offices and the ex-Pirates Arms.
The SPF has 26 properties in total.
As for the way forward, the SPF is facing challenges with Covid-19 pandemic which will impact its financial situation but with the appointment of a new chief executive and Board of Trustees, the SPF is going through a reform process as a way to becoming a strong and sustainable pension fund to meet expectations of members.
The SPF is dedicated to managing and securing its funds through prudent investments and innovative methods to pay out the optimum retirement and related benefits for its members.
The Fund is jointly supported by employees, employers and the government of Seychelles.
The day to day affairs of the Fund is managed by a chief executive officer who reports to the executive Board of Trustees of the Fund on matters relating to the management of the Fund in the best interest of its members.
Roland Duval
