CTSL records K22mil negative return, working to ease impact


A SUPERANNUATION company has recorded a negative return of K22 million in the first quarter of 2020 due to Covid-19 and other related impacts.
Comrade Trustee Services Ltd (CTSL) chief executive Charlie Gilichibi said the first three months were “bad for the whole world”.
“We are not being spared in PNG,” he said.
“The bigger superfunds have had their share and likewise CTSL had also had its fair share.”
Gilichibi said the negative return of K22 million in terms of crediting rate “is a negative 4.5 per cent, roughly”.
“Why I’m saying this is because it’s good to provide the facts upfront and it’s good to control members’ expectations,” he said.
“As trustees, we are doing everything we can but there are some things that are beyond what we can control.”
Gilichibi said the drop in global oil prices and the effects of Covid-19 were impacting economies.
“Covid-19 is having a major impact on our investments,” he said.
He said one of CTSL’s major investment was Oil Search.
Gilichibi said in last December, they had K18 million in Oil Search.
On March 31, 2020, “our current value with Oil Search has reduced to K5.6 million”. “Oil Search has now gone out to seek more institutional investors, offering more of its shares at a further discount,” Gilichibi said.
“Now what does that mean for CTSL?
“If Oil Search goes ahead with that plan, that K5.6 million will further dilute.”
However, Gilichibi urged members that CTSL had plans to avoid further negative impacts on the fund.
“While it is not guaranteed, there are some positive things that we will do for 2020,” he said.
“If we happen to make those things happen, then our members will be cushioned from the global economy.
“But we will do our best to cushion the fund.
“The worst thing we do not want to happen this year is declare a negative crediting rate.
“It will only write-down on member funds.”