Virus affecting investments

The National Business

By DALE LUMA
NATIONAL Superannuation Fund (Nasfund) chief executive officer Ian Tarutia says the fund expects negative returns from its investments due to the Covid-19.
Tarutia said foreign and domestic forces had impacted the funds’ investment portfolio.
“Oil prices have dropped, foreign exchange has been affected and we have an economy in recession,” he said.
“We are closely monitoring our investment portfolio which is now being impacted and consequently return from investments will be negatively impacted.”
Tarutia said, however, on a brighter note, the situation had now presented the fund with an opportunity to review underperforming investments.
“This is with the view of divesting or strategically reshaping businesses operations so that we optimise better outcomes.
“This is an ongoing process and we hope to make some announcements in the coming weeks.”
He said the fund continued to assist members with their superannuation enquiries.
“Since January, we have processed K57,019 transactions totalling K122.3 million to members,” he said.
“Out of this, K33.8 million has been in the unemployment withdrawal category.
“This is excluding the special Covid-19 payment as requested by Government which is pending parliamentary approval in next month’s sitting. Once the approval is granted, we expect our transactions and withdrawal value to increase and we are prepared for this in terms of our liquidity and the cash that we are holding.
“Our contribution inflow or monthly payments from our employers since January continue to be positive and above what we’ve budgeted this year and for the same period last year.
“To date, we have received over K188 million in contribution payments which averages K47.1 million per month.” Tarutia commended the support of the employers in fulfilling their obligations towards their employees and fund members even in this challenging time.
Tarutia said as a corporate citizen, the fund had paid over K11.26 million to the state up to the end of April in salary and wages, and provisional taxes.