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Elvin Bailey
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May 19th 2011 - Having boasted on our television programme, Social Security & You, about our first quarter 2011 accrued interest of EC$33.71million, a challenge came from an unexpected source, in an unexpected place, by a person whose name is not Thomas. “You keep telling us about investment returns; prove it! Show us the audited accounts.” Therefore, published this week for public scrutiny is the Statement of Financial Position of the Social Security Board as at December 2009 as produced by our auditors, Pannell Kerr Foster. (The entire document can be found on our website, www.socialsecurity.kn).
While the 2010 accounts are not yet ready for publication, I can share with you further details of our investment portfolio. As of March 2011, there was EC$1.107billion in investments; with 56.1% in fixed deposits, 28.7% in government securities, 7.8% in real estate, 3.5% in equities, 2.8% in treasury bills, and 1.1% in ‘other’ investments (the tally may be off due to rounding). Of the total portfolio, 97.6% is held locally, 1.3% is held within the Caribbean region and 1.1% is invested in the international financial market.
Some of our new investment activities for 2011 thus far, has been the acquisition of new fixed deposits and additional loans to Government. As such, Fixed Deposits as an asset class increased marginally from 55.7% of total investments in December 2010 to 56.1% at the end of March 2011.
However, investment in SKN government securities has shown a small increase, up by 1% within the quarter compared to year end last year, as additional loans were made available to the Nevis Island Administration and the Federal Government.
Meanwhile our main focus continues to be the development of the Beacon Heights Project, where 10 homes are already under construction.
Even as this information is shared, we are aware that the asset mix is far from ideal. The Actuary has advised of this, as have others, including our staff. However, even as he issued the warning, the said Actuary has admitted that the investment returns have been ‘good’ during the inter-valuation period, averaging 6.2%. This is a testimony to the efficiency, the effectiveness and the vigilance of our Staff, Management and Board.
We pledge to do more of the same as we keep looking up for your benefit!
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