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By Staff Reporter : PNG Today

Nambawan Super declares K280m after tax profit

Papua New Guinea’s largest superannuation fund, Nambawan Super Limited, today announced a strong after-tax profit of K280 million for 2015. Nambawan Super Limited Board Chairman, Mr. Anthony Smaré made the announcement on behalf of the Fund.
At the meeting of Nambawan Super Limited’s Board of Directors on 22 February 2016, the Board considered and accepted the audited financial accounts of the Fund for 2015.
The Fund declared a profit of K280 million which is a very positive result for Nambawan Super’s members, when considering the challenging economic conditions experienced by PNG and the world in 2015.
The K280 million profit for 2015 has enabled the Fund to declare a 5.8 % crediting rate, which has already been credited to members’ accounts, including the Retirement Savings Accounts (RSAs) of retired members.
The Fund will reserve a further 2% to mitigate against the expected continued economic challenges that the local and global economy will face in 2016. Nambawan Super’s Net Asset Value (total members funds under management) now totals K5.17 billion”
The solid profit result is a consequence of the Fund’s disciplined and carefully considered investment strategy, particularly the Fund’s shift of investment focus over the last three years from unrealized returns to realized cash flow returns which softens the impact of the declining economic environment.
2016 promises to be a very challenging year, for members, for the Fund and for the country. We strongly encourage all members to continue to save, and to not be distracted, from saving by the changing economic climate, with all saving decisions based on a detailed assessment of individual financial circumstances. Saving remains critical to the long-term financial survival of all our members, and saving remains too important to ignore; either now, or at any time in the future.
Similarly, the Fund will maintain adequate diversity in its investment portfolio, reduce the holding of risky assets, and increase allocation to less risky assets that have value both in the short term and the long term.
The Board and Management are continuing their dialogue with the National Government regarding the unfunded superannuation liability of K2.07 billion, and achieving an amicable resolution with the National Government in the interests of impacted Nambawan Super members is a top priority for the Fund for 2016.
On behalf of the Board, I commend Nambawan Super management and staff, under the leadership of Chief Executive Officer Garry Tunstall on their hard work and diligent contribution to the 2015 results and I look forward to their continued dedication in 2016 in service of Nambawan Super. “
Key points:
• Nambawan Super’s Net Asset Value (total members funds) now totals K5.17 billion,
• net profit after tax for the year 2015 was K 280 million,
• 5.8% is credited to members’ accounts,
• 2% is reserving rate; and
• Management expense ratio was lower at 1.03%.

Posted by Staff Reporter : PNG Today on 2:32 AM. Filed under , . You can follow any responses to this entry through the RSS 2.0. Share this Article

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