NASFUND members have been credited with 15% for last year on the back of a strong net profit of K294 million and net value asset of K2.22 billion, The National reports.
However, members were cautioned to lower their expectations as the same might not apply for this year due to expected change in economic conditions.
The e-newsletter yesterday said the fund did exceptionally better in fund returns over one-to-10 year period.
The newsletter cautioned members that the 15% credit rates were extraordinarily high and rarely matched year on year.
The fund, as reported last month, had anticipated a model generated return this year of around 8%-9%.
From last year’s return of 16.93%, some of these returns have been parked in reserves, while anticipating the impact of a higher currency and lower capital values.
Reserves are now around 4% of net asset value.
This made Nasfund the highest reserve fund in the country with over K88 million in reserves, which would also provide some insurance for any shock either in PNG or world economy this year.
The aim for this year is to balance the enormous previous returns based on particular asset class settings and bring the fund’s asset allocation into alignment to counter what is seen as emerging issues both at home and abroad.
To this end, Nasfund will set a course for a soft landing this year and that means a return to lower but more sustainable long term returns.
Nasfund asks again for members to readjust expectations in light of the current events unfolding and not to assume double digit returns are the norm.