PSPF’S Q1 NET SURPLUS EXCEEDS BUDGET BY 95%

MBABANE - THE PUBLIC SERVICE PENSION FUND (PSPF)’S financial performance in the first quarter recorded a net surplus of E906 million.

According to the Ministry of Public Service quarterly report, the fund’s budgeted full-year surplus is E1.860 million for the year ending March 31, 2025, this translates to a quarter budget of E465 million. Therefore the Fund‘s surplus recorded on the 1st quarter ending June 31, 2024, resulted on a favourable variance of E441 million which translates to 95 per cent.
A favourable variance is when actual income is higher than budgeted, or actual expenses are lower than budgeted. This is the same as a surplus, where expenditure is less than available income.

This significant increase in performance was mainly attributed to the high recorded revaluation gains in May 2024. The financial year of the Fund is the 12 months period from April 1, through to the March 31. The report details activities of the 1st quarter period from April 1 to June 30, 2024. The fund’s investment income consists of interest income and dividends received from the foreign and domestic portfolios in the financial period under review. Investment Income in the quarter ended June 30, 2024 was E606 million and it resulted in a favourable variance of 15 per cent to the quarter budget of E526 million.  This is mainly attributed to the high dividend income recorded in the quarter ended 30th June 2024. The Fund’s revaluation gains recognised were E438 million in the financial year which is above the gain recorded quarter budget of E200 million.

Gains

This was a mainly attributed by the highest gains acquired in May 2024, due to continued improvement in equity prices. The strengthening of the Rand against the Dollar also had a positive effect on the SA-listed equities. The Investment fees recorded were E35 million against the yearly budget of E139 million and are in line with the quarter budget of E35 million. 
Administration expenses were E38 million in the quarter, against a quarter budget of E50 million. Resulted in a 24 per cent savings in the quarter and was mainly attributable to the delayed payment of the new Investment Adviser which is anticipated to be paid in the subsequent quarter; and the saving in personnel costs since inflation adjustment and performance bonuses have not yet been paid.  

The Withholding Tax paid on foreign dividends was E23 million against a quarter budget of E18 million. This resulted in a negative variance of E5 million, which translates to 28 per cent.
This was a result of the foreign managers’ choice in traded stocks, they traded on listed stocks; that attract withholding tax, hence the highest dividend income recorded in the quarter.

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