NSSA invests in both quoted and unquoted shares on a selective basis. On investing in equities we follow a strategy of preserving capital in light of the anticipated economic developments and overall restructuring of the portfolio. The equities strategy targets to enhance holding in companies that have the following characteristics;

Sustainable Cash- flow generating capacity and dividend paying capacity

We seek to invest in companies that have a solid source of cash flows and diversified revenue composition, preferably companies that have good balance of both export and local earnings. In addition we seek to enhance our holding in high dividend paying companies with a view to increase our income generating capacity.

Sound business models

We seek to invest in companies that are built on solid business models which mainly exhibit defensive characteristics in times of crisis. We will focus on companies that have a sustainable balanced mix of sources revenues and costs both locally and foreign as well as companies that have dominant market shares and competitive advantages.

Strong balance sheets

We seek to invest in companies that are not saddled by expensive and/or offshore debt which might be difficult to service using local cash flows.

Seasoned management teams supported by robust corporate governance structures

We seek to invest in companies that have strong management teams as well as good corporate governance structures in place. The Authority will be evaluating investee companies in line with global good corporate governance practices and promoting such.