According to Audrey Deer-Williams, senior director for investments at the National Insurance Fund (NIF), it will be a challenge this year to duplicate the 14.5 per cent growth in net asset value achieved in 2016. However, plans are in place to respond promptly to new opportunities.

In responses supplied to the Jamaica Observer, Deer-Williams said that while the fund has seen very good growth over the recent period, “the challenge for us will be to continue this performance trend. As difficult as this will be, we are certain that opportunities abound in the local marketplace and we simply have to look for them.”

The NIF manages contributions received for the National Insurance Scheme — a pension arrangement intended to provide support to Jamaicans in their retirement years. In terms of pension assets, the NIF has historically been the single largest in the country.

December 2016 unaudited financial results show that the total net asset value (NAV) of the NIF was approximately $90.07 billion, while December 2015 financial results show that the total NAV was approximately $78.70 billion.

As a result, there was an increase of $11.38 billion (14.45 per cent) over the 12-month period. The year’s outturn follows on 13.5 per cent growth in 2015.

Best performer for the fund in 2016 was real estate, but equities and the bond market also delivered.

For the year just ended, growth included a $2.64 billion increase (+19.7 per cent) in its equity portfolio, as a result of the stellar performance of the Jamaica Stock Exchange.

This was accompanied by a $3.51 billion increase (+33.3 per cent) in its real estate portfolio as a result of property revaluation; and the NIF’s bond portfolio also increased approximately $4.7 billion (+9.2 per cent).

For 2017, the director of investments told the Caribbean Business Report: “We see opportunities within the equity markets as new companies gear up to become listed entities on the [Jamaica] Stock Exchange.

“More businesses are seeing the opportunities associated with becoming a listed entity — from having better access to capital resources to even possibilities for having increased brand awareness.”

The second area of promise, she noted, is the bond space: “We see continued potential here as companies continuously look for access to funding — whether to retool, expand, or simply to refinance their existing debt. We believe numerous companies will be coming to the market, and this will be an additional investment area for the fund.”

There is also potential, she believes, within the real estate environment.

Deer-Williams continued, “As a country, we have been experiencing exceptional growth and development within our real estate sector. In the tourism, commercial and retail spaces we have been seeing a steady increase in development projects, and these will undoubtedly present good long-term investment opportunities for the fund in the coming years.”

One strategy being employed for the coming year is the harnessing of new talent so that the fund can have faster throughput in fund deployment.

According to the investment manager, “Entities are always seeking capital for their respective businesses and, of course, they always want it as quickly as possible.

“The challenge, as in any pension fund, is that we have to strike a good balance between being able to move quickly on investment opportunities so as not to be left out, and taking the necessary time to perform proper due diligence in order to ensure that the best decisions are being made at any given time.”

She said, as a result, “We recognise that having proper staffing will be key, and it is one of those areas that we will be paying close attention to in the coming years.”