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

National Savings Fund


NATIONAL SAVINGS FUND

The National Savings Fund was created in 1995 under the National Savings Fund Act . The Fund shall be administered by the Minister in accordance with the Finance and Audit Act .


The objects of the Fund shall

(i)                  be to provide for the payment of a lumpsum to every employee on his retirement or in respect of every employee , at the time of his death.

(ii)               To set up and operate for the benefit of employees , such schemes, including loan schemes, as may be prescribed.

 

Money  credited to the Fund:

(i)            Contributions of 2.5% from every employer , in resect of every employee

(ii)        ​  Contribution of 1%  deducted from every employee of the private sector , with regards to Transitional Unemployment Benefit

(iii)          Recycling Fee payable under section 47 of the Employment Rights Act 2008

 

Money paid out from the Fund:

(i)                 Lumpsum payments

(ii)               Transition Unemployment Benefits

(iii)             Cost of administering the Fund

 

The difference between money credited to the fund and money paid out from the Fund is called Surplus Fund.

 

The Surplus Fund may held on deposit with the Government , loaned or invested in such manner as the NPF/NSF Invesment Committee set up under Section 38 of the NationalPensions Act may determine , having due regard to –

(i)                 The need for an appropriate level of liquidity in the Fund

(ii)               The need to secure future value of the Fund

(iii)             Any advice received from the NSF Technical Committee.

 

The portfolio of the National Savings Fund as at 31 December 2016 and the 6 months performance 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

 11,545

49.80%

3.00%

1.49%

Treasury Bills and notes

 5,053

21.80%

2.60%

0.57%

Corporate bonds

 2,178

9.40%

3.40%

0.32%

Shares on stock exchange

 1,491

6.40%

1.60%

0.10%

Unlisted shares

146

0.60%

0.00%

0.00%

Mutual Funds

 113

0.48%

5.30%

0.03%

Deposit in Rupees

123

0.53%

2.10%

0.01%

Foreign Currency Deposits

406

1.75%

-1.00%

0.02%

Foreign Equities

 1,932

8.34%

1.00%

0.08%

Hedge Fund and Private equities

 28

0.13%

5.70%

0.00%

structured product and commodities

 177

0.77%

-1.80%

-0.02%

 

23,192

          100.00

 

2.60%

 

 

 

 

 

 

 

BENCHMARK

CPI+3%

2.40%