Our Governance
Governance structures and delegation
Responsible investments
As a prudent institutional investor, we are dedicated to following responsible investment standards in our decision-making. This approach promotes good governance and encourages value creation in the companies we invest in.
Investment approval process
Investing member funds is a thorough process that requires Board approval and aligns with the Minister of Finance, Planning, and Economic Development, as outlined in Section 30 of the NSSF Act. We focus on mature markets that offer predictable returns, in line with our careful investment philosophy.
Growth and asset allocation
We manage our growth through a strategic Asset Allocation Policy established under our comprehensive investment strategy, balancing careful decision-making with the goal of delivering consistent returns for our members.
Investment oversight
The Investments and Project Monitoring Committee (IPM) leads our responsible investing efforts, ensuring that our investment policies and strategies are properly implemented while continuously supporting ESG-compliant companies.
Responsible investment policy
Our commitment to responsible investing is formalised in a Board-approved Investment Policy, which outlines our strategy and reinforces our dedication to responsible practices.
Monitoring and review
The Board actively oversees responsible investments through:
- Thorough evaluation of investment proposals in consultation with the relevant Minister
- Quarterly reviews of performance of real estate, equities, and fixed income against set targets
- Biannual evaluations of Fund Managers to ensure they meet our investment standards and targets
- Incorporating ESG factors into investment decisions, reflecting our commitment to sustainable practices
- Regular updates to strategic asset allocation to align with market changes and our long-term investment goals
By implementing these measures, we ensure that our investments not only contribute to the Fund's financial growth but also align with broader sustainability and corporate responsibility principles. For more details, see the Chief Investment Officer's Report and our IPMC Report.
Finance Committee
Chairperson: Dr. Silver Mugisha
Members
- Mr. Ramathan Ggoobi
- Ms. Annet Birungi
- Dr. Sam Lyomoki
- Mr. Patrick M. Ayota (ex – officio)
- Mrs. Agnes Tibayeita Isharaza (Corporate Secretary)
Declaration
The Finance Committee of the Board complied with its mandate for the year under review and all scheduled meetings were held.
Attendance: 84%
Composition and meeting procedures
The chairperson and members of the committee were suitably qualified and had the necessary expertise required to discharge their responsibilities. The committee met on 5 occasions, with meetings scheduled in line with the company’s financial reporting cycle.
Committee purpose and how it contributes to value creation
The role of the Finance Committee of the Board is to assist the Board to fulfil its oversight responsibility and mandate in the following key areas:
- Determination of the annual and supplementary budget involves making and submitting to the Minister, for approval, estimates of the Fund's income, its capital recurrent, and other expenditures likely to be incurred for the ensuing year
- Review and approval of the audited financial statements prepared by management
- Review provision of proper books of accounts and records with respect to the Fund's financial transactions, assets, and liabilities
- Recommendation of the interest rate for declaration depending on the Fund's realised income
- Effective financial management of the Fund and its assets
- Review of the Fund's accounting policies and principles
- Reviews of allocated departmental policies and strategies
The Departments the Committee has oversight of are Finance, Commercial, Technology and Enterprise Solutions, and Procurement and Disposal.
Matters considered FY25
The Board actively oversees responsible investments through:
- Monitored global economic outlook (US, Ukraine, Middle East, elections) and develop mitigants to potential risks posed
- Prudent income management and collaboration with the IPMC
- Regular review of workplans and resource utilisation
- Advanced Smartlife and voluntary initiatives, made recommendations to lower the minimum saving amount to enhance flexibility and support Fund growth
- Refocused IT strategy towards internal software development, leveraging in-house capacity for solutions
- Strengthened procurement processes, encouraged accreditation of business segments, and supported growth in the real estate asset class
- Provided ongoing support to management in achieving strategic objectives
The committee considers the following reports:
- Financial reports
- Commercial reports
- Operations reports
- IT reports
- The Management Quarterly Update
- Request on variation of the contract for design and build of the Temangalo housing project to allow for price adjustment
- Quarter 2 Procurement and Disposal Unit reports
- Quarter 2 Enterprise Risk Management report
- The NSSF financial performance report for quarter 2 ending 31 December 2024
- Technology and Enterprise Solutions reports
Challenges and opportunities
Challenges:
- Limited growth in real estate income due to delayed project implementation, resulting in significant deferred income and heightened risks of impairment
- Exposure to external global risks beyond the Fund’s control, which could adversely impact income performance
- Increased risk aversion following the probe, potentially constraining investment decisions and overall growth
Opportunity:
- The Fund is now more focused than ever, committed to delivering superior value compared to any other pension fund in Uganda, with the goal of becoming the first and best choice for our members.
Value preservation in FY26
The committee will continue to operate within its terms of reference and ensure that meetings address all regular matters reserved for its consideration. Additionally, the following key activities are expected to receive the committee’s attention during FY26:
- Require management to present proposals on accelerating real estate development
- Strengthen risk management with a particular focus on sustaining and growing income
- Emphasise implementation of the ambitious 10-year strategy, with focus on expanding coverage through enterprise growth department
- Support the Enterprise & Growth (E&G) Department by enhancing procurement processes to enable the department to achieve its objectives and drive progress
Capitals
Stakeholders
King IV™
