Wednesday 20 May 2016
ACTIVITY REPORT FIRST QUARTER 1ST QUARTER 2016
PRESS RELEASE from SEYCHELLES PENSION FUND
The Board of Trustees of Seychelles Pension Fund (SPF) have the pleasure in submitting the audited Financial Statements for the year 2015 to its esteemed member
The Financial statements were prepared under International Financial Reporting Standards (IFRS) audited by Ernst & Young Seychelles and certified by the Auditor General. More details of the financial performance is available on the website of SPF at http://www.pensionfund.sc
Consequent to completion of audit, SPF is also pleased to inform its members that the statement of members accounts are being dispatched individually to them in the coming weeks. SPF requests all its members to ensure that they check the correctness of their statements in terms of contributions made for the year 2015 and to liaise with our offices if they have any queries.
SPF also takes the opportunity to give an update of its performance in contributions received, pension and benefits paid and recent investments made for the first quarter of 2016.
2.PENSION AND BENEFITS PAID
SPF’s performance for the year 2015 shows that out of all asset classes, domestic shares earned the highest rate of return of 20%. With only 4% in domestic shares out of its total investment of SR1.5 billion, namely in Seybrew and SACOS, from which it has already recovered its initial investment and is now getting profits, SPF has also increased its equity shareholding by purchasing 50% of Al-Salam Bank of Seychelles for Sr. 21.4million, and has also made a bid for shares in the Seychelles Commercial Bank. Supported by two very well supported institutions, ASBS will launch full service commercial banking offering full suite of commercial banking products to individuals, SMEs and Corporates to promote healthy competition in Seychelles and to produce attractive returns to its shareholders. It is a known fact that the banking sector provides very good returns and SPF has seized the opportunity to venture into this sector.
In real estate, which is currently 46% of total investments, SPF has added Continental property to its portfolio, purchased from Heirs Richard Mancham for a value of SR 22 million. This is one of the few remaining properties available in central Victoria and planning advice has been sought for potential development of ground plus three floors with basement parking, in line with guidelines for development in Revolution Avenue. The project based on estimated cost and rent payable is viable with a rate of return of 10% spread over 10 years, which is in line with our investment policy.
In terms of overseas investments, SPF has purchased shares in Afreximbank through a payment of $2.3million. Afreximbank is a multilateral financial institution that is over 23 years old and is an African Export Import Bank with private and institutional investors for the purpose of financing, promoting and expanding intra-African and extra-African trade.
Investment in local financial instruments has also grown in the first quarter to 23% of its total investment portfolio.
Investments as at 31st March 2016
Investments as at 31st December 2015 and 31st December 2014
The aim of all these investments are to earn a good rate of return to assist in the sustainability of SPF, to continue paying pension and related benefits, and increase the pension and benefit amounts being paid in years to come. The Actuarial review of 2013 by Pricewaterhouse Coopers (PWC) of Sydney Australia, showed that SPF is at the moment financially stable. However, to sustain SPF in the long term upto 2050 and beyond, there is a need for a review every three years. World Bank inspection in 2015 also reported that SPF is financially sound but needs periodic reviews.