Pension body hits target of 2009 planned investment returns

Rwanda’s pension body, the Social Security Fund of Rwanda (SSFR), has hit a 100 percent record of targeted investments returns. The institute’s initial target was Rwf 3 billion after an investment portfolio of Rwf144.2 billion.While the Kacyiru based pension body had projected to realise that target by the end of 2009, figures show that it managed to pull-it-off by the end of last month. 

Rwanda’s pension body, the Social Security Fund of Rwanda (SSFR), has hit a 100 percent record of targeted investments returns. The institute’s initial target was Rwf 3 billion after an investment portfolio of Rwf144.2 billion.
While the Kacyiru based pension body had projected to realise that target by the end of 2009, figures show that it managed to pull-it-off by the end of last month. 

According to officials, the firm’s investment portfolio had increased by 12.1 percent as of November this year from Rwf128.6 billion last year to Rwf144.4 billion in November this year representing a 12.1 percent increase with December excluded.

“The firm’s average growth rate of investment returns stands at 29.6 percent since 2000 as the investment portfolio has grown tremendously from Rwf18.6 billion in 2000 to Rwf144.4 billion by November this year,” officials revealed.

The Business Times has also learnt that the pension body has also managed to make a record collection of contributions from the initial planned Rwf11.5 billion to Rwf11.9 billion registering a 103.9 percent actual collection.
In a period of 11 months, from January to November, the pension body’s cumulative contributions reached Rwf23.6 billion.

A SSFR report seen by Business Times indicates that the body’s evolution of the net investments returns are expected to hit over Rwf8 billion this year compared to Rwf7.0 billion registered last year representing a 14.2 percent increase.

The November report states that body registered Rwf5.7 billion as of end of November and this was mainly because the many businesses in which the pension body invested, pay the dividends to their shareholders only at the end of the year.

“This year’s net investment returns will be higher than last year’s but it be lower compared 2007’s net investment returns from Rwf13.4 billion in 2007 to Rwf8 billion projections of this year,” the report stated.

In the previous months, the pension body received good news from the Kenya’s biggest telecom company (Safaricom), after the telecom announced the registration of Rwf50.1 billion profit after taxes.

SSFR had bought a stake worth $7.6 million (Rwf4.3 billion) in Safaricom during the latter’s Initial Public Offering (IPO).
There were initial rumours that the SSFR was going make significant losses after fears that Kenyan’s biggest telecom faced economic difficulties.

The public pension body is also expecting more dividends at the end of the year as the telecom giant is making more profits.

During their September investor meeting, officials in the telecom revealed to investors that the telecom is expected to make more profits than it did last year.

The telecom’s profit before tax grew by 1.7 percent representing Rwf69.2 billion. It recorded double digit growth in revenue to Rwf308.3 billion although voice revenues only increased by 6.2 percent (to Rwf239.7 billion) because of the reduction in tariffs.

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