FINANCIAL STATEMENTS MARCH 2019 WHAT ARE FINANCIAL STATEMENTS - - PowerPoint PPT Presentation
ANNUAL FINANCIAL STATEMENTS MARCH 2019 WHAT ARE FINANCIAL STATEMENTS Financial statements are written records that convey the business activities and financial performance of a company. NJMPF financial statements are audited by
MARCH 2019
Financial statements are written records that
convey the business activities and financial performance of a company.
NJMPF financial statements are audited by
Auditor General.
Shows the profitability of a business. Shows the solvency of a business. Presentation of the financial strength of the
business.
Communicating with different stakeholders.
(STATEMENT OF NET ASSETS & FUNDS)
The balance sheet provides an overview of a
company’s assets, liabilities, accumulated funds and reserves as a snapshot in time.
The date on the balance sheet shows when the
snapshot was taken, which is generally the end of the financial year.
This gives stakeholders an idea as to what the
company owns and owes as well as the amount invested by company.
(STATEMENT OF CHANGES IN NET ASSETS & FUNDS)
Income statement provides an overview of
revenues, expenses and net income.
Financial performance is assessed by giving a
summary of how the company incurs its revenues and expenses through both operating and non-
It also shows net profit or loss incurred over a
specific accounting period.
The long-term investment objective of the funds
as approved by the Board of Trustees are CPI plus 5% net of investment fees over a rolling five-year period.
Asset Managers are expected to add returns of
2% a year more than that achieved from passive benchmark portfolio, measured over a rolling 5- year period.
The combined investment assets of the three
Funds increased by 6.21% over the previous year from R 19.9 billion to R 21.1 billion as at 31 March 2019.
2 4 6 8 10 12 CPI + 5% SF RF PF
AVERAGE 5 YEARS RETURN
7,9 8 8,1 8,2 8,3 8,4 8,5 8,6
AVERAGE 5 YEARS RETURN
AVERAGE 5 YEARS RETURN
According to investment reports, 2018 was the worst
year in a decade for South African stocks
The JSE All Share Index (Alsi) was down 11% in Rand
terms last year as a result the’ investment returns were low in 2018
2019 has seen improved performance in the markets
and the results of the recovery will come through in portfolio returns
For Superannuation and Retirement Fund members,
investment performance has no direct effect on the value of their benefits because it is calculated using pensionable salary and years of service.
The diversity of allocations in the Provident Fund
portfolio as well as smoothing of returns has allowed for the positive performance overall
The Fund slight underperformed the investment
manager benchmark over the 5 years to 31 March 2019.
The Provident Fund remains ranked in the TOP
QUARTILE over the long term , in the ALEXANDER FORBES GLOBAL LARGE MANAGER SURVEY
The Fund has for the first time not achieved its
long-term investment objective. This is due to South African equities, which form a large part of the portfolio, have only marginally outperformed CPI over the last 5 years.
The Fund has performed in line with the
investment manager benchmark over the 5 years to 31 March 2019.
The Fund slightly underperformed the investment
manager benchmark over the 5 years to 31 March 2019.
ASSET
CASH 4% COMMODITIES 1% BONDS 26% PROPERTIES 3% EQUITIES 64%
ASSET
CASH 4% COMMODITIES 1% BONDS 26% PROPERTIES 3% EQUITIES 65% CIS 2%
ASSET
CASH 4% COMMODITIES 1% BONDS 22% PROPERTIES 4% EQUITIES 67%
Investments assets of the Provident Fund
increased by 16.35% from R 4,116 billion to R 4.789 billion as at 31 March 2019.
The total assets of the Fund at market value
increased by 17.41% from R4.263 billion to R 5.005 billion as at 31 March 2019
The Fund return on investment has increased by
8.59% over the year to 31 March 2019.
Investments assets of the Retirement Fund
increased by 2.94% from R 4.077 billion to R 4.198 billion as at 31 March 2019.
The total assets of the Fund at market value
increased by 2.76% from R4.125 billion to R 4.239 billion as at 31 March 2019 .
The Fund return on investment has decreased by
13.58% over the year to 31 March 2019.
Investments assets of the Superannuation Fund
increased by 9.67% from R 11.705 billion to R 12.146 billion as at 31 March 2019.
The total assets of the Fund at market value
increased by 3.83% from R11.800 billion to R 12.252 billion as at 31 March 2019.
The Fund return on investment has decreased by
11.90% over the year to 31 March 2019.