ETF membership accounts stagnate
By Paneetha Ameresekere
Employees’ Trust Fund (ETF) Board Membership accounts stagnated at 14.6 million last year (2019), year-on-year (YoY), the Labour Ministry’s 2019 Performance Report, tabled in Parliament on 23 October, showed.
Commensurate with these developments, the number of active accounts managed by the ETF stagnated at 2.6 million YoY to 2019. Nevertheless, repayments to members increased by 11.05 per cent (Rs 2,022 million) YoY to Rs 20,314 million in 2019 and ETF collections, 2019 over 2018 also increased by 8.47%
(Rs 2,139 million) YoY to Rs 27,395 million to 2019. Further, membership balances increased by 20.64% (Rs 58 billion) YoY to Rs 339 billion to 2019.
Commensurate with these developments, ETF Board’s assets YoY grew by 9.58% (Rs 30 billion) to Rs 343 billion and net profits increased by 11.16% (Rs 2.6 billion) to Rs 25.9 billion, YoY, in 2019. Meanwhile, the ETF Board’s investment portfolio at the end of 2019 amounted to Rs 319,150 million, a 9.42% (Rs 27,485 million) YoY growth. Of the ETF Board’s
Rs 319,150 million investment portfolio of 2019, Rs 248,725 million (77.93%) were invested in Treasury (T) Bonds yielding interest from 8% to a high of 10.13%, respectively.
The next highest investments in 2019 were on fixed deposits with a total of Rs 51,369 million comprising 16.1% of its total investment portfolio.
In related developments, the ETF Board’s investments in equities amounted to Rs 11,335 million or 3.5% of its total investment portfolio in 2019.