NSL bouncing back from K60m ‘down’
By ANTON HUAFOLO
DESPITE picking up K60 million in unrealised losses in the equity market fall in January this year, Nambawan Supa Ltd said it was addressing this by increasing its diversification mainly in property and unlisted equities.
Board chairman Sir Nagora Bogan said the hedge against stock market volatilities by way of investing in unlisted international equities provides “a global spread in different sectors with the natural hedge of zero correlation with the stock markets”.
Despite the tough start to 2008, the fund recently moved to include unlisted equity investments in other parts of the world including Europe and expanding on property investment.
This is in an effort to further diversify its investments portfolio as a hedge tool against equity market volatility, Mr Bogan said.
Some observers see the move as a measure to counter the unrealised losses that would have a bearing on the performance of the fund this year.
Sir Nagora said no one can predict equity markets, and “the value of listed equities on the stock markets is subject to growing vagaries and volatility of market forces that are beyond the sphere of control and influence of the board and management”.
Nambawan Supa has a total of 16 listed equities as per its 2006 annual report, of which 14 have dropped in share price since the equity market fall in January, bringing in unrealised losses amounting to some K60 million.
Meanwhile, NSL will be building 200 houses in Port Moresby in addition to the 200 houses that the Government intends to build for public servants.
NSL’s chief executive officer Mr Leo Buskens said yesterday the super fund is currently negotiating with the Government to facilitate the management of K37 million earmarked by the Government to build 200 houses for public servants.
The fund will provide funding for an additional 200 houses, which brings to 400 new houses to be constructed in Port Moresby.
The Public Employees Association president Michael Malabag commended Nambawan Supa’s gesture of 32% credit for its members.
Nation Stories