Committee purpose and how it contributes to value creation

The Investments and Project Monitoring Committee (IPMC) of the Board is responsible for assisting the Board to fulfil its oversight responsibility as provided under Section 31 of the NSSF Act Cap 230, which states: “All monies in the Fund, including the reserve account, which are not for the time being required to be applied for the purpose of the Fund shall be invested in such investments as may be determined by the Board in consultation with the Minister.”

The main responsibilities of the Committee include:

• Providing a deeper understanding of investment activities to the Board
• Reviewing, analysing and recommending all investment proposals to the Board for consideration
• Recommending an investment strategy, policies, and guidelines to the Board for approval
• Reviewing and recommending investments in equities, fixed income and real estate and the associated budgets to the Board
• Reviewing and recommending investment design concepts and master plans to the Board or changes thereto
• Reviewing performance of real estate projects, equities, and fixed income quarterly, in line with set targets and recommending to the Board

Declaration

The Investments and Project Monitoring Committee of the Board complied with its mandate for the year under review. All scheduled meetings were held.

IPMC’s key milestones in the FY 2023/24:

• There was tremendous growth in the investment returns over the past year, especially in the fixed income portfolio
• Increased membership arising from the amendment of the NSSF Act availed increased contributions for investment purposes
• Recovery from the significant unrealised foreign exchange losses suffered during the FY 2022/23
• Maintained the investment levels within the real estate portfolio

IPMC Committee’s key activities in FY 2023/2024 included review, analyse, monitor and recommend to the Board:

• The proposed changes to the Investment Policy Statement (IPS) and Investments Manual
• Consideration of the Project and Change Management Policy
• The quarterly updates on the investments implemented, the Real Estate Projects, Property Management, and the Hi-Innovator Programme
• The review of the economies in the Fund’s investment universe and implications for investments
• Updates on the exchange and equity losses and the impact on performance
• The integration of the Fund strategy into the National Development Plan 4 (NDP4)
• Review of external fund management
• The proposed Investment departmental budget FY 2024/25
• Consideration of the contracts for the IPMC consultants

Challenges and key lessons learned during FY2023/2024:

• Multiplicity of investigations and the resultant need to stabilise the Management of the Fund
• Delayed regulations to operationalise the amendments to the NSSF Act affecting the rollout of new products

Key highlights during the current tenure 2021-24:

• Achievement of the Strategic Assets Under Management (AUM) target of UGX 20 trillion ahead of the planned period
• Consistently made investments that were informed by thorough economic and legal considerations
• Continued to pay incremental returns on members’ savings
• The investment portfolio streams remained valid

Key focus for the following year FY 2024/2025

• Support formulation of the voluntary regulations to tap into voluntary savings space
• Actively pursue Private Public Partnerships (PPP) in the mobilisation of funds or finances to undertake real estate projects. In addition, the Fund will actively participate in the formulation of the proposed Real Estate law. The Fund shall also endeavour to free all encumbered land and continue to explore affordable housing options
• Position the Fund to rally and encourage savings mobilisation to support other Government programmes
• Urgently put in place and publish the Fund’s allowable investments areas with clear boundaries