The National Social Security Fund (NSSF) has reiterated that ongoing plans to reduce its real estate portfolio will be undertaken in strict adherence to the Retirements Benefits Authority (RBA) regulations.  According to NSSF acting Managing Trustee Tom Odongo, the ongoing process to reduce the funds' real estate portfolio to match RBA’s 30% requirement will be spearheaded by professional and RBA accredited fund managers to ensure that the process remains above board.

Already, NSSF, he disclosed has appointed six prominent Fund Management firms to act as transactional advisors as the fund prepares to align its liquidity balance across its portfolio.

Speaking when he received a Kshs 534million dividend Cheque from Bamburi Cement, one of the Nairobi Securities Exchange listed firms that NSSF has invested in, Ondongo confirmed that the fund will continue undertaking a review of its current investment mix to ensure reasonable investment returns.

The Fund, he disclosed, is currently paying a return of 7.5% on member accounts and will continue improving the rate of return on its investments for the benefit of members. Across its investment portfolio, NSSF has managed to achieve an average rate of return on investment of more than 14% compared with industry performance benchmark of 12%.

“As we receive this dividend cheque from Bamburi Cement, we are also keen to reiterate that we are actively restructuring our investment portfolio  to enable us realize maximum returns and also comply with regulatory requirements,” Odongo explained.

In compliance with the RBA Investments guidelines and in a bid to ensure prudent investments of funds held by NSSF, Odongo said that the fund has managed to recruit and retain professional fund managers and custodians. Over the years, NSSF’s investment portfolio has continued to steadily grow largely due to the Management teams commitment to adopt an active and passive investment strategy.

Besides Bamburi Cement, NSSF is a major participant at the Nairobi Stock Exchange where the fund has invested heavily in the blue chips companies with portfolio in excess of Kshs 35billion. Following the appointment of the six fund managers, NSSF is currently engaged in the asset transfer process to the six fund managers. Already the transfer process of the NSE securities has been finalised while the corporate bonds transfer process is now under-way.

Courtesy: Media Edge PR