…PSPF remains firm, income grows to E3.15 billion
MBABANE – As was the case in the previous financial year, the year 2023 saw the Public Service Pension Fund (PSPF) recording positives in its performance.
In its annual report for the year 2023, it is reflected that the fund continued to posture itself on stable growth as income grew to E3.15 billion in 2023, compared to E3.04 billion in 2022.
This positive performance delivered a net surplus of E1.4 billion as recorded in the financial statements for the year ended March 31, 2023. It is noted in the report, that the overall assets of the fund increased by 7.64 per cent from E30.3 billion in 2022 to E31.7 billion in 2023.
According to the report, the main driver of the positive financial performance was the listed global and South African listed equities in the foreign portfolio.
These instruments, the report stated, recorded gains from interest earned and dividend income as recognised through profit or loss.
Still on the positives, it was stated that the domestic portfolio assets also grew to reach 44 per cent.
“This is testament to the confidence the fund has in the local economy coupled with a dedication to growing it for mutual benefit.
‘‘The fund remains committed to its role as a reliable pensions fund as it paid out a total of E1.4 billion in benefits to members in the period under review, compared to E1.3 billion in 2022. These were in the form of gratuities, retirement annuities, death benefits, membership withdrawals, contracted employee benefits and funeral cover expenses,” reads part of the report.
STEADY
Also mentioned is that the fund’s funding levels remained steady at 81.1 per cent (2023) from 80.2 per cent (2022).
“The Board of trustees is steadfast in its commitment to exploring strategies to reach a full funding level and ensuring long-term sustainability of the fund. The fund’s consistent improvement over the years, despite the effects of COVID-19, has seen our funding level over the past five years recover from 68.9 per cent to the current status.
‘‘We shall continue to endeavour tirelessly to one day realise a fully funded position,” it was mentioned.
In a statement contained in the report, the fund’s Board Chairman, Sammy Dlamini mentioned that the period under review had a significant milestone nestled within it, which was the rebranding of the fund after 29 years of existence.
The chairman recounted that the fund launched a lively new-look corporate identity and logo in July 2022.
He said the new brand replaced the distinctive symbol developed in 1993, after transitioning from the Pensions Department of the Ministry of Public Service to a public enterprise.
Dlamini said features of the new logo represent the growth and regeneration trajectory, which the fund has forged and aspires to uphold.
“Our rebranding comes at a significant time, as the world begins recovery from the adverse socio-economic effects of the COVID-19 pandemic. It is, however, reassuring to note that despite the uncertainties caused by that period, the fund remained firm in its stability.
More so, he said, the fund’s stakeholders remained united and supportive, thus exerting the fund to resilience.
“This annual report is therefore a canvas, on which the performance of our year, is painted in line with our resolute values of transparency.
It is also an important stakeholder engagement instrument enabling them to keep a pulse on the performance of this public entity entrusted with such an important task of the Eswatini public service pensions,” said Dlamini.
The chairman also touched on investments saying they were the fulcrum of the growth strategy of the fund.
IMPACTED
He said while various global challenges negatively impacted PSPF’s investment performance, the fund was able to maintain a relatively stable performance in the year under review.
He said as at March 31, 2023, the fund had invested 44 per cent (E13.7 billion) of its total assets within the Kingdom of Eswatini, 37 per cent (E11.6 billion) in South Africa, 19 per cent (E5.9 billion) offshore through external Asset Managers.
He mentioned that assets invested locally were ably managed both internally by the fund and through local asset managers.
On another note, the chairman related that the fund also posted a steady total annual return for the year amounting to 8.6 per cent, which is equal to the overall return recorded in the previous year.
“The fund has remained committed to investments in the Eswatini economic landscape as that in turn churns jobs and impacts the socio-economic development of the country in a positive manner. The Eswatini portfolio which is comprised mainly of fixed income instruments and property had an annual return of 7.3 per cent,” he said.
Elaborating, Dlaminis said the steady and stable return in the domestic portfolio was in part due to the asset allocation of this portfolio being predominantly fixed-income instruments.
He said it continues to be dedicated to exploring strategic ways to make impactful investments that will consolidate and grow the organisation’s asset base through the various investment portfolios for the benefit of its membership base.