SNPF

The Fund continues to pursue its minimum risk investment goal, it further continues in doing the following:

• ensuring that all assets are liquid and tradable, including all property investments.
• striving to yield investment returns in excess of inflation over the medium to long-term horizons.
• reducing property investment exposure to an absolute maximum of 20% of total assets in line with international portfolio trends.
• balancing the Fund in both regional and global asset allocation to reduce risk and enhance returns.
• reviewing intellectual support provided to the Fund through a multi manager approach.

Investments continue to be the backbone of the Fund. This financial year, investment increased by 22% to E865 million from E710 million in 2005. The increase was mainly due to favorable condition in the market, both in the JSE and worldwide.

The funds investments are categorized into the following asset classes:

This relates to the balance portfolio invested into Allan Gray Asset Manager, Investic Asset Managers and African Alliance. The funds are generally invested in the JSE and offshore. There was an increase of 37% to E528% from E387 million in 2005.

This relates to shares held by Nedbank Swaziland, Newera Partners Limited and RSSC. An increase of 9% was achieved this year. Local listed investments increased from E11 million to E12 million.

This relates to fixed period investments held with SPTC and African Alliance. There was a decrease of 9% from E23% in 2005 to E21% this financial period. The reason for the decrease is because Swaziland Government bonds matured in 2005.

Two loan agreements were entered into between the Fund, Manzini City Council and Fincorp respectively. The agreements entered into with both the organizations were to the effect that they make drawdowns to the value of E15 million. The loan granted to Manzini City Council was towards the general improvements of infrastructure within the city.

As at 30 June 2006, Fincorp had drawn E5 million and Manzini City Council had drawn E3 million.

It is the Funds policy to value its investment properties every year. G.S Chiyanda valuated all the investment properties of the Fund and the reported fair value gains amounted to E3.6 million. When evaluating the property valuator uses “open market valuation” which is the best price at which the sale of an interest in property can expect to be completed unconditionally for cash consideration.