NBM PAL optimistic about 2026 investment returns

Malawi Exclusive 

National Bank of Malawi (NBM) Pension Administration Limited (PAL) Unrestricted Pension Fund has expressed optimism over 2026 investment returns despite a slow start to the year on the Malawi Stock Exchange (MSE) and persistent economic challenges.

The Board of Trustees said the investment operating environment was expected to remain challenging throughout 2026 and into the medium term, citing persistently low interest rates, elevated inflation, relatively low corporate bond yields, and increased tax costs from portfolio rebalancing.

The Fund recorded an exceptional performance in 2025, when it approved and allocated investment income of 115% to members as at December 31, 2025.

Speaking during its first Annual General Meeting held on Thursday at the NBM Leadership Centre in Blantyre, Fund Chairperson Michael Kampani said the outlook for 2026 was markedly different from the favourable conditions that supported the Fund’s strong performance last year.

“We gave our members a return of 115%, which is an indication of very good performance, meaning our members’ funds and assets are growing to support them during retirement. Meanwhile, we have set strategies to help us navigate through the economic challenges and replicate the 2025 performance.”

“During the year, the Fund received K9.48 billion in monthly contributions from 182 participating employers. It also recorded K106 billion in transfers-in, of which K99.22 billion, representing 93%, came from Default Fund transfers, while K7.06 billion, or 7%, came from normal individual transfers,” said Kampani.

Stakeholder Richard Chakhala said although stakeholders were pleased with the Fund’s performance during the 2024–25 financial year, there was concern about the difficult outlook for 2026.

“Just like any other interested stakeholder, I am worried. However, I believe the strategies that the pension fund has put in place should help avert some of the challenges that have been highlighted,” said Chakhala.

Chakhala said the challenging economic environment was likely to affect players across the industry, making the implementation of the Fund’s investment strategies critical.