95 per cent of NIS funds are invested

Ninety-five per cent of the reserves of the National Insurance Scheme (NIS) are invested in various areas of Barbados.

Director of the NIS Ian Carrington said while this is not an ideal situation to have, given the challenges the country is facing in terms of it foreign exchange position, it is the best alternative for the time being.

“We have taken the view that these finds should develop Barbados. But we also recognize that there comes a point in time when you have to start diversifying some of your resources from within the domestic space.  This has a lot to do with the fact that though you will still have persons working, you would only have enough to generate the kind of income in the country to support all of the elderly persons,” Carrington said.

“ . . . back in 2004, the National Insurance Board started that process of diversification, away from Barbados, by essentially employing four investment consultants who manage a stable of investment managers on our behalf and they are required to invest those monies that we have provided for them only in the area of equities because we are over exposed in the area of bonds,” he revealed to delegates on the final day of the 76th Annual Barbados Workers’ Union Delegates Conference at Solidarity House.

The NIS Director noted that with the global meltdown of the financial markets in 2007 and the accompanying challenging thereafter, their investment portfolio in the international market has been performing well.

“When we blend it all together we have an equity portfolio that is expected to give us a return of seven per cent after inflation and it has in fact been given us that return even in the face of the fact that there has been a downturn in the market . . . on an annual basis.  Actually, it will deliver ten per cent on an annual basis collectively,” Carrington said.

“Now the issue there is that we have not made any additional investment into those external equity portfolios in the last four to eight years and that has had to do with the fact that we have not been getting the approval of the Central Bank for the utilization of foreign exchange and that has to do with the fact of the state of the foreign exchange,” Carrington stated.

He explained that the alternative would be to leave the money in the banking sector on a current account earning zero or invest it in the current economic space to get some return.

(l-r) NIS Director Ian Carrington, Barbados Workers’ Union General Secretary, Toni Moore and President General Linda Brooks listen as a delegate makes a submission to the conference.

20 Responses to 95 per cent of NIS funds are invested

  1. AU Sar
    AU Sar September 3, 2017 at 12:29 pm

    NIS is a Public Trust Cash Fund hence it’s Illegal to Invest Trust in Commercial Business Ventures!

    • Colette Felix
      Colette Felix September 3, 2017 at 1:23 pm

      Tell that to the dlp

    • AU Sar
      AU Sar September 3, 2017 at 3:23 pm

      Colette Felix this is what make Politicians such evil individuals, for Barbados have the most intelligent lawyers and economists as Politicians in both the DLP & BLP and each one of them know the Regulations and Laws governing the Utilization of Trust Funds yet they all remain Silent on this Illegal Hateful Nasty Practice against Working Class People and Their hard earned Cash Funds. Therefore what’s the Benèfit of Electing Mia at next General Election when her Party has done this said nasty evil to Working Class Barbadians. I likewise don’t have much respect for Bajans also because with all your educated intelligence you’ve never demonstrated basic common sense in commenting and dealing with such grievious and detrimental illegal fraudalent practices of Criminal Politician.
      Every Descent Upright Law Abidíng Citizen of Barbados should be now on every call-in program and bombarding every news media publication demanding the Arrest and Prosecutiön of the Thiefing Criminal Politicians who has wickedly and intently endangered the lives and future of 10s of Thousands of Tax Payers by Misappropiating the Nation’s NIS Trust Fund! That’s why it’s called a National Trust Fund because the People of the Nation has Trust their Future in their Government’s Hands

      • hcalndre September 4, 2017 at 3:53 pm

        Au Sar; Barbadians are like crabs in a barrel, forget about education because they are no more educated than the Jamaican, Grenadian, St. Lucian or whoever, its a thing they have about themselves. When I say crabs in a barrel who gets out even by climbing on the backs of the others, who are left in the barrel that`s nothing to do with the ones that get out. As you said that some attorney or law firm should had file a class action suit a long time ago, but it`s not too late. The only one that is capable would be Comissiong but then they are the lizards and yard fowls who would oppose him although it would be for the benefit of the very workers.

  2. Sheron Inniss September 3, 2017 at 12:35 pm

    I know from my little dip in to investing that is no sure fire plan. I know about the Almond Beach fiasco. Millions of shares and not a red cent and furthermore the government paid the Trinidadians millions for the Almond Beach brand logo. I am still trying to figure out why as a logo is $100 for every 10 years. (I figure someone get a witch brew to drink)

    I would like to see more local investments that generate more jobs, money and opportunities to export.

    I do not always agree with C O W Williams but take a leaf from his book. Better yet Mr Hoad. Before I get lambast let me add James Husbands, Mr Brancker, Sir Trevor Carmichael, et al

  3. Nico HL Beckles
    Nico HL Beckles September 3, 2017 at 12:35 pm

    that’s what you call it??? Investing?

  4. Nikki Bayley
    Nikki Bayley September 3, 2017 at 1:30 pm

    Show us the Financial Statements. ..we can read

  5. Susan Maynard
    Susan Maynard September 3, 2017 at 2:14 pm

    can some one tell me ,how the country get to this, .wait wait you telling me that 95 per cent NIS fund are invested ,are them talking about the peopleof this country money that work so hard,

  6. Veronica Wiggins
    Veronica Wiggins September 3, 2017 at 2:33 pm

    Those people who don’t contribute when they reach retirement age there will be nothing for them. Those who contribute will get a pension. Isn’t this as easy as ABC.

  7. jrsmith September 3, 2017 at 2:57 pm

    Financial statement , you are living in la,la, land nothing in barbados is audited , thats why nothing works tin pot government………………………………………

  8. Ali Sun
    Ali Sun September 3, 2017 at 3:17 pm

    They all want locking away for life!!

  9. Baz Moz
    Baz Moz September 3, 2017 at 4:14 pm

    So where’s the other 5% ?

    • Ali Baba
      Ali Baba September 3, 2017 at 11:36 pm

      5%petty cash, ah mean petty teeth

    • hcalndre September 4, 2017 at 4:07 pm

      Baz Moz; this would only show how educated the bajan is, he said 95% is invested in Barbados, where and in what? he also said the returns are very small and its better in invest at home than abroad. Where is the 5%? It is said that the Barbados government borrowed millions from the scheme, could that be only 5%? Bajans are no problem to control because they were taught to be docile and stay in their corner, the politicians learned that.

  10. Tony Webster September 3, 2017 at 4:56 pm

    Wow…on-target… nitty-gritty commentary, and queries, from thinking Bajans all. Whomsoever is granted the responsibility to create the “New Barbados” will need such contributors to contribute in a meaningfull way over the next decade, to ensure that these festering sores are healed, and that our country is also inoculated such that they never recur to torture future generations.

  11. Carlisle Norville September 3, 2017 at 7:39 pm

    Veronica Wiggins, it is NOT as simple as that, I get the impression that you might be yard foul for the D.D.P.( i worked @ what you
    people call a good job, including being a Lance Corporal in the Barbados Coast guard, i put in enough time to receive a pension ,now that i can receive a pension, those basters@ the N.I.S.giving me
    $ 760:00 a month & telling me that is my pension so stop running
    ya mouth yard foul.

  12. MArk Anthony
    MArk Anthony September 3, 2017 at 7:40 pm

    We the people should have some control of our NIS funds. I think it’s treated too much like a tax

  13. Tony Webster September 4, 2017 at 7:08 am

    A National Pension Scheme, is NOt a cookie-jar. At elast…it’s not supposed to be….otherwise, we cud just “invest” the whole bundle of cash in the Consolidated Fund, and get a “good rate of return” – say 25%p.a. Sorry, I jus’ doan have a clue when we would get back our PRINCIPAL….in CASH…not in MORE government “paper”.

    Say….I just had a brilliant thought: we cud buy-back the Hilton; pay DEM in BB$; and cut a deal that they would run it for the N.I.S., and pay us the profits in US$. It’s a win-win thing…if exactly not “novel? Hmm…howabouts de New Sam Lords? ….I dunno, bohsie…I would think dem would have us tie-up in Chinese knots like a boa-constrictor…


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