NIF spends $2.12 billion to become largest TransJamaican Highway shareholder
THE National Insurance Fund (NIF) spent an additional $2.12 billion to become the largest TransJamaican Highway Limited (TJH) shareholder at a time when it continues to ramp up its equity investments to support its growing funding obligations.
The NIF increased its equity position in TJH to 882,916,000 ordinary shares, or 7.0628 per cent, when it bought 589,120,643 ordinary shares of TJH on April 10 at $3.60 per share. This means that the NIF’s TJH position is worth $3.24 billion.
The NIF first emerged in the top 10 ordinary shareholders on March 31 when it owned 293,795,357 ordinary shares and was the sixth-largest shareholder. March 31 was the same day when National Road Operating & Constructing Company Limited’s (NROCC) equity position was transferred to participants who bought into the offer for sale transaction through which it raised $9 billion at $3.60/US$0.0228 per share. TJH paid a $0.1258 dividend on April 24 to shareholders on record as of April 3.
This NIF has been increasing its equity positions in listed companies as it seeks to improve its income base and meet the obligations to contributors to the National Insurance Scheme (NIS). The NIF bought a 4.10 per cent stake in Barita Investments Limited (BIL) from Cornerstone Financial Holdings Limited for $3.67 billion, or $73.47 per share, on March 28. That transaction made the NIF the third-largest shareholder in Barita with a 4.8338 per cent equity stake as of March 31. BIL’s price of $70 values NIF’s position at $4.13 billion.
The NIF purchased an additional 6,155,533 ordinary shares of GraceKennedy Limited since the start of 2025 to further cement itself as GK’s largest shareholder, with 67,314,291 ordinary shares or a 6.76 per cent equity stake as of June 30. GK’s price of $69.02 values NIF’s position at $4.65 billion.
Based on the most recent publicly available top 10 shareholder lists, the NIF has accumulated some significant equity positions in some of Jamaica’s largest publicly listed companies. It is the third-largest shareholder in NCB Financial Group Limited with a 3.52 per cent position worth $3.58 billion; the fourth-largest shareholder in Pan Jamaica Group Limited with a 3.75 per cent position worth $3.05 billion; the third-largest shareholder in Scotia Group Jamaica Limited with a 1.958 per cent position worth $3.25 billion; the sixth-largest shareholder in Sagicor Group Jamaica Limited with a 1.89 per cent position worth $2.96 billion; the second-largest shareholder in Wisynco Group Limited with a 5.76 per cent position worth $4.39 billion; and the second largest shareholder in Carreras Limited with a 4.41 per cent position worth $3.71 billion.
The NIF is the vehicle used by the National Insurance Scheme (NIS) to invest the contributions received from employed individuals. These funds are used to pay contributors’ retirement (NIS pension), disability and death benefits. The NIF also remits 17 per cent of the NIS contributions received to the National Health Fund (NHF), according to the Public Bodies Budget published by the Ministry of Finance & the Public Service.
However, the NIF’s estimated interest, dividends, and net rental income of $13.20 billion for the March 2025 financial year was below the NIS’s pension payments of $29.75 billion. The NIS contributions for the year of $58.55 billion was more than enough to cover all expenses for the period, with the NIF recording an estimated $41.23 billion surplus.
The NIF’s asset base for the March 2025 financial year was estimated to have increased to $234.96 billion with $137.23 billion in investment securities and $24.68 billion in investment properties. The liabilities were estimated at $3.02 billion, with $231.94 billion as the net asset value.
For the 2025/2026 fiscal year (April 2025 – March 2026) NIF projected that it would earn $26.18 billion in total income, collect a net inflow of $53.75 billion from NIS contributions, and pay $36.16 billion in benefits. The net surplus was projected at $40.84 billion, with $272.78 billion in total assets and $272.78 billion in net assets.
The NIF must improve its returns, based on a 2016 actuarial report that said it could be insolvent by 2033. This is due to the projected increase in benefits payable for an ageing population with a labour force that isn’t growing at the same pace. The agency was said to have plans to increase its staff complement from 29 to 37 during the current 2025/2026 fiscal year.
