Nasfund last Friday announced a massive slump in profits from K308.658 million in 2010 to a mere K44.662 million in 2011, The National reports.
It said the slump was mainly because of currency appreciation, peaking property valuations and softening of share values in its listed equities.
Not much much detail was given about how the controversial Sovereign Community Infrastructure Treasury Bill (SCITB) K125 million investment impacted on its final earnings.
Nasfund said 2% out of its reserves of K97 million - equating to K44.531 million - would be distributed into individual member accounts.
The audited accounts revealed:
• Net assets of K2.338 billion representing an increase of 7.5% from a net asset value of K2.221 billion recorded in 2010;
• Reserves of K97.5 million representing 4% of net asset value before distribution;
• Operating profit before provision for contingent liabilities and related impairments of K44.662 million compared to K308.658 million recorded in 2012.
In the area of membership, the fund recorded:
• Active membership base of 153, 397 representing a growth of 13.8% increase from 140, 545 members in 2010;
• Active employer base of 2,107 employers representing an 8% increase from 1,943 employers in 2010;
• Average monthly contribution inflows of K28 million from employers, representing an increase of 13% compared to K24.7 million received month in 2010; and
• Payment of K166.28 million to 55, 086 members in unemployment, retirement and housing advance benefits, compared to 74, 323 members withdrawing in 2012, representing a reduction of 25% of members withdrawing from the fund.
Chairman Mel Togolo said the year 2011 was a very challenging year, not only for Nasfund but the superannuation industry.
“From an industry perspective, our respective investment portfolios were adversely impacted by currency appreciation against the Australian dollar, peaking property valuations and softening of share values in our listed equities,” he said.
“These were the main drivers of capital gains in the past, which saw funds in PNG recording high profits and delivering double digit returns.
“Those days are over and with the advent of the global financial crisis still lingering in the western world, its effect is now being felt by our own economy in which we operate and invest.
“Despite these setbacks, our industry has been resilient and strong enough to continue delivering positive crediting rates compared to super funds in Australia, for example, who are still experiencing high negative returns.”
Togolo said for the fund itself, the SCITB investment was a stark reminder that consultation with the state and all its instrumentalities was paramount to achieving desired feedback outcomes without recourse to legal challenges.
Togolo said the board’s strategy of setting aside savings in the good years and maintaining a high reserve level was now bearing fruit.
“Even where we are recording a loss as a consequence of high provisioning to accommodate a K40 million general impairment to cover amongst others, the resolution of the SCITB investment with the state, we are still able to pay a competitive rate to members,” he said.
“The board approved to pay 2% out of its reserves of K97 million, which equates to approximately K44.531 million, to be distributed into individual member accounts.
“This will leave the fund with K43.5 million in reserves, which equates to 1.82% of net asset value.
“For members who exit the fund in 2012, the interim crediting rate is 1.5%.”
It said the slump was mainly because of currency appreciation, peaking property valuations and softening of share values in its listed equities.
Not much much detail was given about how the controversial Sovereign Community Infrastructure Treasury Bill (SCITB) K125 million investment impacted on its final earnings.
Nasfund said 2% out of its reserves of K97 million - equating to K44.531 million - would be distributed into individual member accounts.
The audited accounts revealed:
• Net assets of K2.338 billion representing an increase of 7.5% from a net asset value of K2.221 billion recorded in 2010;
• Reserves of K97.5 million representing 4% of net asset value before distribution;
• Operating profit before provision for contingent liabilities and related impairments of K44.662 million compared to K308.658 million recorded in 2012.
In the area of membership, the fund recorded:
• Active membership base of 153, 397 representing a growth of 13.8% increase from 140, 545 members in 2010;
• Active employer base of 2,107 employers representing an 8% increase from 1,943 employers in 2010;
• Average monthly contribution inflows of K28 million from employers, representing an increase of 13% compared to K24.7 million received month in 2010; and
• Payment of K166.28 million to 55, 086 members in unemployment, retirement and housing advance benefits, compared to 74, 323 members withdrawing in 2012, representing a reduction of 25% of members withdrawing from the fund.
Chairman Mel Togolo said the year 2011 was a very challenging year, not only for Nasfund but the superannuation industry.
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Mel Togolo… a very challenging year, not only for Nasfund but the superannuation industry
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“These were the main drivers of capital gains in the past, which saw funds in PNG recording high profits and delivering double digit returns.
“Those days are over and with the advent of the global financial crisis still lingering in the western world, its effect is now being felt by our own economy in which we operate and invest.
“Despite these setbacks, our industry has been resilient and strong enough to continue delivering positive crediting rates compared to super funds in Australia, for example, who are still experiencing high negative returns.”
Togolo said for the fund itself, the SCITB investment was a stark reminder that consultation with the state and all its instrumentalities was paramount to achieving desired feedback outcomes without recourse to legal challenges.
Togolo said the board’s strategy of setting aside savings in the good years and maintaining a high reserve level was now bearing fruit.
“Even where we are recording a loss as a consequence of high provisioning to accommodate a K40 million general impairment to cover amongst others, the resolution of the SCITB investment with the state, we are still able to pay a competitive rate to members,” he said.
“The board approved to pay 2% out of its reserves of K97 million, which equates to approximately K44.531 million, to be distributed into individual member accounts.
“This will leave the fund with K43.5 million in reserves, which equates to 1.82% of net asset value.
“For members who exit the fund in 2012, the interim crediting rate is 1.5%.”
Why has Nasfund stopped communicating to their members through their website. The monthly newsletter is behind by 6 months. What was the interest rate credited to members
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