ENPF’s equity investment portfolio up 4%
MBABANE – There was a four per cent increase in the ENPF equities investment portfolio and a one per cent increase in the money market portfolio.
In their annual report for the year ended June 30, 2022, ENPF said their local portfolios had outperformed both the benchmark and the foreign component of the fund’s investment. The local portfolio of unlisted equity investments was widely diversified across industries in hospitality and tourism, financial services, retail, agriculture, telecommunications and real estate.
ENPF added that they had seen notably lower investment returns over the past two years, and this has been driven by unusual global and South African market return series and currency volatility. They said for the five-year period to June 2022, contributions received had been sufficient to cover benefits paid out.
“Contributions received for the year ended June 30, 2022, amounted to E421.9 million and represent a yearon-year increase of eight per cent. The year-on-year increase as compared to 2021 is largely due to the annual increase in contributions of 6.45 per cent as well as the economic impact of the uplifting of COVID-19 lockdown restrictions on employment as reflected in the year-on-year increase in membership from 137 903 in 2021 to 138 021 in 2022,” reads the report.
ENPF said the growth in assets emanated from additional investments made during the year as well as re-invested earnings and movements in
asset fair values. The main asset classes are listed and unlisted equities, investment properties, loans and advances and shortterm money market deposits.
Worth noting, during the 2022 financial year, ENPF introduced a direct global equity portfolio as part of its asset classes. This offers diversification into assets not available in the region. It is an active portfolio with a focus on investing in companies that provide potential long-term sustainable growth.
ENPF CEO Prince Lonkhokhela said this approach aligned with the investment strategies adopted by the fund’s regional managers.
“The key driver of investment markets as well as economies across the world from the start of 2022 was the Russian invasion of Ukraine, which destabilised markets through high fuel and energy prices, resulting in a persistent rise in inflation and a consequent correction of the same through tightening of monetary policy, resulting in higher interest rates,” he said.