By Phesheya Mkhonta
The Eswatini National Provident Funds’ (ENPF) gross rental revenue decreased by 2% from E51,9 million in 2021 to E50,9 million in 2022.
The Fund has attributed the decline to the exodus that was experienced, especially in their Manzini properties due to the economic unrest which saw most of the businesses selling grey or import cars relocating to neighbouring country, Mozambique.
This is contained in the Fund’s Annual Report for the year ended 30 June 2022.
ENPF also notes that recent property developments are another factor that has affected their annual revenue.
“The fact that more residential properties mushroomed in Manzini, close to the city center, brought about steep competition, especially to our Liqhaga Flats.”
Apart from its property portfolio, there are other asset classes that the Fund invests in which comprise Loans (12%), Money Markets & Cash (17%), Listed Equities, Investment Properties (20%), and unlisted Equities (51%).
ENPF discloses that one of its best performers has been its unlisted equities portfolio.
“Our local portfolios have outperformed benchmark and the foreign component of the Fund’s investment. The local portfolio of unlisted equity investments was widely diversified across industries in hospitality and tourism, financial services, retail, agriculture, telecommunications, and real estate.”
Furthermore, the Fund has disclosed that it continues to have sufficient funds to cover its liabilities to members when these become due.
“The Fund has maintained a healthy funding ratio over the years. During the reporting year, the Fund’s investments remained highly cash generative and had a robust balance sheet, good liquidity, and a high-quality capital base.”
ENPF continues “The assets of the Fund increased by 8.4% from E4.58 billion in 2021 to E4.96 billion in 2022, while members’ funds increased by 7.7%. The funding level has remained at 1.02 times when compared to the previous year and there was a substantial excess of assets over liabilities. The Fund was financially sound because its assets are sufficient to cover its accrued liabilities.”
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