SNPF

The Southern African equity markets were not spared from the volatility of the global markets; markets started very well, recording meaningful results in the first nine months of the financial year, only to decline in the final three months. Our investment portfolio geographic spread could not provide full protection against the declines as the world markets performed worse than Southern Africa in the same period. The Fund’s well established investment strategy of investing 20% of the portfolio in Swaziland’s real estate market and the new legislation which requires us to invest at least 30% locally, successfully supported the satisfactory results achieved in the year ended 30th June 2011.

In line with the Fund’s strategic objective of paying interest to members that is higher than what is obtainable in the banks; savings and call accounts and above the consumer price index, during the year under review, the Board paid interest on members’ funds at 9% per annum while in the prior year 10% was paid. In all these years the rate paid by the Fund was generally higher than the obtaining rate in the market.

Early indications for performance in the coming financial year point to a cautiously positive outlook amidst the unstable world economic conditions. We have lined up a number of exciting projects for the next financial year and we are looking forward to a fulfilling and productive 2012. The Fund has strong cash reserves, which are significantly higher than the international liquidity requirements reserves and it has a solid contribution member base with claims that average 50% of the member’s contributions. Also the Fund has a resilient investment policy of which I am confident will see the Fund through the prevailing crisis.