Super windfall
By FRANK ASAELI
NAMBAWAN Super Ltd (NSL) members will find more money in their retirement accounts today.
The superfund yesterday started crediting 32% interest to over 90,000 members including retired members maintaining retirement savings accounts.
This means each member will be getting 32 toea for every kina in his or her account. Put another way, if you have K10,000 in your account, it will swell by another K3,200.
Announcing this yesterday, chairman of NSL Sir Nagora Bogan said the board had approved the crediting of 32% interest to its members based on its super performance in 2007.
NSL recorded an after tax profit of K489.8 million last year, which is an increase of 217%.
The 32% (K413 million) interest crediting rate leaves reserves of K127.5 million, representing 6% of net assets which conforms to the maximum reserving limit set by the Bank of Papua New Guinea.
The increase is mainly attributed to fair value gains from the fund’s investments.
Sir Nagora said this outcome resulted in record growth of net assets by 49% from K1.516 billion to K2.261 billion, a level which also includes K250 million payment by the Government in respect of the unfunded contribution by the State as employer, and contributions from a growing number of private sector members.
The NSL Board has also approved an interim interest rate of 7% for members exiting in 2008.
Sir Nagora attributed the growth to political stability, stability in domestic financial market, growth in the world economy and the legislative reforms within the superannuation industry.
Nambawan Super’s story is similar to that of Nasfund, which credited 37% interest to its members’ accounts last months following an outstanding performance last year.
Both super funds have warned their members not to expect exceptional results going forward due to growing vagaries and volatility of the market forces.
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