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Kampala, Uganda | THE INDEPNDENT & URN | Makerere University Retirement Benefits Scheme (MURBS) has declared a record interest rate of 13.40% on members’ savings for the financial year 2023/2024.
Dr. Elizabeth Patricia Nansubuga, Chairperson of the MURBS Board of Trustees, announced this while releasing the scheme’s performance report during the 14th Annual General Meeting (AGM) held on Tuesday, at the School of Public Health Auditorium.
Dr Nansubuga said that this is the highest interest rate declared by the scheme in the past five years, surpassing last year’s 12.34%. She expressed optimism for further growth, stating that strategic initiatives are being implemented to sustain this positive trend.
Earlier in the week, Dr. Nansubuga while presenting the scheme’s performance report to members of the University Council, noted a Net Investment Income of 44.6 billion shillings, significantly higher than the 34.4 billion shillings collected in contributions during the financial year.
The Chairperson also revealed that the fund’s value has grown from 352.4 billion at the end of the previous financial year to 409.2 billion Shillings as of 30th June 2024, reflecting a 16.1% growth. Although slightly below the targeted 17%, Dr. Nansubuga commended the robust efforts of the Board and its fund managers.
“By 30th June 2023, MURBS had a fund value of 352.4 billion. The Trustees targeted Fund growth of 17%, and I am glad to inform you, that the fund value of MURBS, as per the Audited Financial Statements of 30th June 2024 is 409.2 billion, which is an increase of 16.1%, failing to hit the target by less than 1%,” she said.
Adding; “This achievement was made possible by strategic periodical activities undertaken by the Board and our fund managers, supported by the strong oversight committees of the Board.”
Thank you for attending the 14th Annual General Meeting!
Your feedback is vital to us. Please complete the evaluation form via the link: https://t.co/TTGK8No66K.Below are the financial highlights discussed during the meeting of the AGM. pic.twitter.com/lTnH3Vr99j
— Makerere University Retirement Benefits Scheme (@MURBS_Mak) October 25, 2024
Mr. Cosmos Senyonga representing @urbra_ceo noted that it was critical to have the engagement where the Sponsor and the Scheme meet to receive performance reports on the management of the fund. He said that the timely contributions and performance of investments were key in… pic.twitter.com/yQ32EtWaND
— Makerere University News (@MakerereNews) October 22, 2024
Dr Nansubuga also said that 86 percent of MURBS’ funds are currently invested in government bonds but added that the Board is exploring diversification to reduce risks.
“86 percent of our money is invested in government bonds, and sometimes we do not have to put all our eggs in one basket, there is a high concentration of risks. so that is one of the key material risks that we want to address to reduce the amount we have in government securities,” she said.
Adding “We want to diversify our portfolio and not be heavily invested in government securities but also venture into other fields, do social goods, and earn money.”
Professor Barnabas Nawangwe, the Vice Chancellor of the University, implored the MURBS Board of Trustees to consider investing in the Makerere Martial plan to develop the University’s land around the country.
Dr. Nansubuga said that they would look into the suggestions, and the risks before taking a stand.
Mark Lotukei who represented the CEO of Uganda Retirement Benefits Regulatory Authority (URBRA) thanked the trustees for always putting governance as their first priority which has helped them to reach several milestones.
Arthur Kibira, a member urged management of the scheme to explore higher-risk investments for potentially greater returns.
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