Expect lower returns: Sayer

By DALE LUMA
INFLATION in the country is much higher than last year, which means that to provide a real return to members is even tougher, says Nambawan Super Ltd (NSL) chief executive officer Paul Sayer.
Responding to questions from The National, Sayer said while it was too soon to assess the final outcome for 2022, the NSL was warning members to expect a lower return.
“In 2022, global markets have been volatile as a result of the Ukraine-Russia conflict, and resulting fuel and food shortages.
“But in the past couple of weeks, global markets have seen positive signs,” Sayer said.
“Globally, inflation is rising quickly making the cost of living more expensive for everyone, and pushing upward pressure on interest rates.”
He said locally, there were several unfavourable conditions.
“Historically, fixed interest investments such as Treasury Bills and Government Inscribed Stock have provided returns in line with the long-term average return of the Fund,” he said.
“However, in 2022 there has also been a reduction in return offered from these investments.
“These low rates could have long-term impacts for members as rates are locked in for several years.”
He added that one of the major challenges NSL faced was the State-imposed market concentration levy on the BSP Financial Group, which was currently before the courts.
“Despite the challenging global and local economic conditions, our team is working hard to maximise benefits for our members and minimise the impacts of the slowing global growth,” he said.
“Like many businesses in PNG, Nambawan Super is eagerly awaiting the formation of the new government that we hope will have a strong business drive.”