Vision

To be the Social Security Provider of choice

Mission

To secure a better life for our growing membership by; Providing Quality Products; Great Customer Service; and Offering Competitive Returns in a Transparent and Efficient Environment.

Tagline

A better future

This is your NSSF

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Vision: To be the Social Security Provider of Choice Mission: Quality Products. Great Customer Service. Competitive Returns.

Values: Customer Centric. Innovation. Integrity. Teamwork. Efficiency

Agenda

Business Model

NSSF Today

Assets

Investments

Return

Benefits Payments

Channels

NSSF in the new regulatory environment

Conclusion

Q & A

NSSF BUSINESS MODEL

Members NSSF

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Part of earnings used for Overhead

You qualify for the benefits when you:

Reach age 55 (Age benefit)

Reach 50 years and are unemployed for at least 1 year (Withdrawal benefit)

Are sick and unable to work (Invalidity benefit)

Die, in which case the benefits are paid to your next of kin (survivors benefit)

Move to exempted employment e.g. Government (Exempted employment)

Permanently move out of Uganda (Emigration grant).

Investment Portfolio

NSSF Today: A provident Fund created by the NSSF Act of December 1, 1985

IMPACT OF NSSF ON UGANDA’S ECONOMY

UGX 4.0Trillion in member funds. 450,000 members. Total assets UGX 4.1 Trillion. Equivalent to 5.6% of GDP. Holds 15.8% of USE traded securities. Invested UGX. 2.5 Trillion in government securities. 40% of Govt Debt. Placed UGX. 720Bn as Fixed deposits with local banks: 14% of all Bank deposits. UGX 423 Bn in Real estate investment properties.

NSSF plays a significant role in Uganda’s economy. This role can be bigger!

Changes in the Fund

The last three years have seen

the fund grow in all dimensions

The engine of growth has been: • Relationship Management improved compliance, • Prudent aggressiveness investment led to higher

revenues • Efficiencies led to better cost management • Robust Customer relationship led to higher

satisfaction

Growth In Asset Base

13

37

17

09

21

29

27

43

34

81

42

00

13

40

16

60

20

65

26

83

33

22

40

22

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2009 2010 2011 2012 2013 2014

UG

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Assets Member Funds

• The Fund grew by more than 150% over the last five years. Fund size doubled over the last three years.

• The Fund is fully funded. Assets are more than adequate to cover member liabilities.

263 295

388

480

552

0

100

200

300

400

500

600

2008/09 2009/10 2010/11 2011/12 2012/13

Contributions Received (UGX.Bn)

Powered by the Relationship model of management – compliance improved from 49% to 74% leading to improved contribution

NSSF Investments as of March -2014 (Amts in Ugx Bn)

The legible investment opportunities are not enough to absorb NSSF investment potential. What is needed are strategic domestic long term investments that can absorb this huge local savings pool.

Equities Portfolio- 8% (UGX 318Bn) Fixed Income Portfolio- 81% (UGX. 3.6Tr)

Real Estate Portfolio- 11% (UGX 423Bn)

Real Estate Portfolio (UGX 423 Bn)

Investment Properties Book Value

Workers House 52.9

Social Security House. 21.0

Mvule Naguru 1.6

Mbuya Nadiope 2,2A, Ismai11,13 1.6

Mbuya Property-M65 Ismail Rd 2.8

Lumumba Leasehold land 5.0

Yusuf Lule road 17.6

Lubowa Land 223.0

Busiro Temangalo 12.2

WIP (Pension Towers & Lubowa) 85.2

Total 423.0

Equities: (UGX. 341 Bn) Value % of portfolio

Stanbic Bank Ltd Listed 30.7 9%

Bank of Baroda Listed 5.5 2%

DFCU Bank Listed 17.5 5%

Housing Finance Bank Private 54.0 16%

Uganda Clays Listed 15.3 4%

The New Vision Printing & Publishing Co. Ltd Listed 9.0 3%

UMEME Listed 50.1 15%

Kenya Commercial Bank Listed 1.2 0.3%

Safaricon (K) Ltd Listed 83.1 24%

Serena (TPS) Ltd Private 5.4 2%

Centum Investments Limited Listed 5.0 1%

Fund Managers (SIMS & PINE BRIDGE) Managed Funds 63.8 19%

Total 340.6 100%

Efficiency adding more value to members

49

129

161

276

390

404

51 45 59 54

75 63

31

89 95

197

281

331

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2009 2010 2011 2012 2013 2014

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Revenues (Underlying) Costs Interest to members

• In the midst of tough economic times, aggressive but prudent investment strategy led to revenue growth of more 200%.

• Efficiencies and cost management strategies led to higher productivity. Growth in revenues were not matched with increased costs.

• The result is that members received more value, as more and more of the income was credited back to members.

• Cost income ratio is at 17%, better than 55% of the banking industry average. • Cost of administration is at 1.6% better than most global funds of similar sizes.

Revenue, Cost & Interest to Members Trends

Your Return

Ongoing Initiatives to Improve Returns

Rebalancing the Fixed Income portfolio from short term to long

term investments with higher yields.

Trading in the regional equity markets

Commencing the housing projects in Lubowa & Temangalo in

2014

NSSF invests long term, therefore, in the long term the Fund

must preserve member funds. NSSF 2013 rate of 11.23% is

above the 10 year inflation rate of 9.23%.

NSSF does preserve the value of member funds.

In its investment decisions. NSSF seeks to provide a

reasonable return to members, without

compromising the safety of member savings.

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

Jun-03Jun-04Jun-05Jun-06Jun-07Jun-08Jun-09Jun-10Jun-11Jun-12

Comparison between NSSF rate and 10 yr inflation

10-yr Inflation NSSF

Efficiency leading to better Benefit Payments

33%

27% 5%

8%

16%

11%

Benefits Payout in UGX. Billions

Age Benefit

Withdrawal Benefit

Survivor's Benefit

Invalidity Benefit

Emigration Grant Benefit

Exempted Employment

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

FY 07/08 FY 08/09 FY 09/10 FY 10/11 FY 11/12 FY 12/13

Benefits Payments in UGX. BN

105

20

44

10

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20

40

60

80

100

120

2009/10 2010/11 2011/12 2012/13

Benefit Payment Turnaround Times (Days) • Benefits paid, by 200% to 140Bn • Number of beneficiaries paid, up by 22% to 11,000 per year. • Only 5% paid to survivors. 95% paid to living members • Benefit turnaround time improves to 10 days from a high of 105

days.

NSSF is paying more within a very short time.

Growth achieved within a robust Control Environment

• Effective Board Oversight thru the Board Audit

Committee and Internal Audit Department

• Policies & Procedures in place

• Functioning Whistle blower framework

• Awareness campaign among staff and members

• Consequence management: Zero tolerance for internal fraud & bribes.

• Streamlined processes

• Unqualified Audit Opinion

• Reduced, significantly, opportunities for fraud:

- Less payment of fraudulent claims - Less incidences of internal fraud.

• Ownership of Risks by all staff

• Better service to members.

• Less proven scandals

Implemented The results

How NSSF serves you

20 dedicated branches country wide with associated 51 outreach centre's;

Interactive electronic service delivery channels that enable you track your savings anytime, anywhere;

www.facebook.com/ NSSF Uganda

On a regular basis, please use these channels to review your statement balances or make inquiries or advise when you notice an error. We will rectify as needed.

Instant Statement

The accolades

NSSF is leading the pack:

In the top 10 of best 100 East Africa Countries on Go Runner up on Financial

Reporting – Public Sector

The effort is paying off: Customers are happier

2010

2013

82%

49%

Customer Satisfaction has risen.

Reason Given • Access to information • Good customer Service • Reasonable Returns • Very short TAT.

Preparing for the new regulatory environment

The Change Requirements of a Retirement Benefits Scheme Progress for NSSF

1. Establishment of the Uganda Retirement Benefits Authority- A regulator for the retirement benefit sector to ensure sound governance of members’ savings

Apply for a operating license by 31st Dec 2012.

Appoint a Trustee, Custodian, Administrator and

Fund Manager

Draft an Investment policy in line with the

provisions of the Act.

NSSF has received a provisional license.

Appointment of Trustees, Custodians, & Fund

Managers is in progress.

Draft policy in place. To harmonize with

regulations once released.

2. The Proposed Liberalization Bill, 2011 seeks to liberalize the Pensions Sector

NSSF will cease to be a monopoly . Opens sector

to other players.

Convert from a Provident Fund to a Pension Fund

Obtain a minimum capital threshold

Lower the minimum age to 45

Widen the scope of Benefits to include Home

Ownership, Education, Health & Maternity and

Unemployment

Changing the organization culture to become

a customer centric and efficient organization.

Advocating the government to give current

members the option to choose between lump

sum and annuities.

Developing new products for its members.

Your NSSF is prepared for the new regulatory and competitive environment

Looking towards the Future: Key Strategic Targets

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Additional products & Services to members

Manage costs to Expense ratio of 1.4%

Return to members interest of 10 yr inflation +2%

Grow Net Return on Assets to 13.4%

Improve Benefit Turnaround time to 5 days

Maintain “Satisfactory” compliance & audit ratings

Improve staff satisfaction to 90%

Automate 90% of core business process

At NSSF: A Renewed Promise

Efficiencies are improving;

Continue to reduce our operating costs;

Improve benefits processing time;

Automating all our core business processes;

Improving member statements updating to make it

real time.

Income is growing;

We are diversifying our portfolio to improve our returns;

We are seeking access to regional markets;

Exploring investment opportunities in government

infrastructure projects including in energy, and transport

sectors.

NSSF Commitment; Prudent investments to preserve the value of your savings;

Reasonable rate of return on your investment

Easy Accessibility to your savings;

Transparency in all dealings;

Value adding benefits;

For A better future

Thank You

For more information:

• Call us on 0800286773 – Toll Free

• Send us a email at customerservice@nssfug.org