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Ministry of Social Security, National Solidarity and Environment and Sustainable Development

Portfolio of National Pensions Fund

National Pensions Fund


The National Pensions Fund was created in 1979, under the National Pensions Act . The Fund shall be administered by the Minister of Social Security , under the Finance and Audit Act .

 

Surplus Fund of the National Pensions Fund is determined by the difference between Money Credited to the Fund and Money paid out of the Fund

According to the National Pensions Act , the Money credited to the Fund are:

(i) Contribution from Employers and Employees

(ii) Contribution from Government for payment of Basic Pensions

(iii) Collection of NSF

(iv) Collection of Levy

According to the National Pensions Act, the Money paid from the Fund are:

(i) Contributory Pensions

(ii) Basic Pensions on behalf of Government

(iii) Cost of administering the Fund

According to Section 38 of the National Pensions Act ,

Subject to the Finance and Audit Act, any surplus remaining in the Fund may be held on deposit with the Government or invested in such manner as the NPF and NSF Investment Committee set up under subsection (2) may determine, regard being had to–

                     (a)        the need for an appropriate level of liquidity in the Fund;

                                 (b)        the need to secure the future value of the Fund;

                                 (c)        the need for national development;

         (d)        any advice the NPF and NSF Investment Committee may receive from the Board.

 

Section 38(2) of the NPF Act :

There is set up for the purposes of determining the manner in which any surplus remaining in the Fund may be invested, a committee to be known as the NPF and NSF Investment Committee

   

The portfolio of both the National Pensions Fund and National Savings Fund as at 31 December 2016  stood at around some Rs106.5 bn and Rs 23.2 Bn respectively.

  

The Market value of NPF portfolio as at 31 December 2016 , and the performance return for the 6 months ended 31 December 2016 are shown in table below:

 

 

            PERFORMANCE REPORT FOR 6 MONTHS ENDED 31 DECEMBER 2016

 

 

31-Dec-16

asset allocation

Returns

weighted returns

 

Rs M

%

%

%

Government stock and bonds

 45,413.00

42.65%

3.60%

1.54%

Treasury Bills and notes

 16,015.00

15.04%

1.40%

0.21%

Corporate bonds

 6,172.00

5.80%

4.70%

0.27%

Shares on stock exchange

 13,217.00

12.41%

3.30%

0.41%

Unlisted shares

 2,773.00

2.60%

1.30%

0.03%

Mutual Funds

 812.00

0.76%

3.90%

0.03%

Deposit in DBM

 294.00

0.28%

8.30%

0.02%

Deposit in Rupees

 1,193.00

1.12%

0.70%

0.01%

Foreign Currency Deposits

 2,739.00

2.57%

0.80%

0.02%

Foreign Equities

 14,530.00

13.65%

0.80%

0.11%

Hedge Fund and Private equities

 830.00

0.78%

6.00%

0.05%

structured product and commodities

 1,550.00

1.46%

-3.70%

-0.05%

Loans

 118.00

0.11%

2.00%

0.00%

Property

 819.00

0.77%

3.70%

0.03%

 

106,475

 

 

2.70%

 

 

 

 

 

 

 

BENCHMARK

CPI+4%

2.90%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 ​


 

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