Fund members get 4pc interest
THE National Superannuation Fund Ltd (Nasfund) board has approved an interest of 4.5 per cent equating to over K235 million for the 2020 financial year.
This was announced by chairman Charles Vee yesterday while noting that it had already been credited to members’ accounts.
The audited results included a net profit of K222.9 million and a net asset value of K5.57 billion for the year ending Dec 31, 2020.
Vee said the results reflected what had been the most challenging year for the fund, particularly against a weakened economy and impacts brought on by the Covid-19 pandemic.
“In response to these headwinds, I am pleased that the fund has demonstrated once again strong resilience and exceeded its budgeted cash profit after tax of K266 million by K15 million due to tight control on operating expenses and lower tax costs,” he said.
“The pandemic and other external factors beyond our control adversely impacted the economy which resulted in valuation losses of K155 million across our property and equities investments, including K38 million in additional provisions to comply with international accounting standards, which was partially offset by foreign exchange gain of K97 million due to the kina depreciating against other currencies.
“This resulted in an overall net valuation loss of K58 million which represents an additional 1.10 per cent crediting rate, members have missed out on.”
Other 2020 highlights included:
- A TWO per cent increase in contribution receipts totalling K575 million;
- A THREE per cent increase in membership base to 604,587 contributors.
- A SEVEN per cent increase in employer base to 2,576 establishments;
- A 22 per cent increase in superannuation withdrawals totalling K469 million against budget of K384 million;
- A NEW logo launch;
- A Memorandum of understanding signing with the East Sepik government to provide superannuation services to its cocoa and vanilla farmers; and,
- AN annual regional conference held online and live streamed to over 5,000 participants throughout the country.
“This year, we continue focusing on enhancing our member services, including housing developments while actively seeking to grow our membership and new investment opportunities,” Vee said.
3 comments
Even before the Covid 19 came in, Nasfund was not paying good interests to its members compared to Nambawan Super Limited. It was only last year that nafund paid 6.3% . Years before and last years interests were below 5%. Members are not happy. Nasfund management not doing good. Members deserve better returns in their investment.
Interest paid to the NasFund members is way too low. In future the fund must consider paying more than 20% or so as annual interest. From business point of view, an interest paid annually is the only benefit to the members while the chunk of it is left to people in the comfort zones, especially those in the pretext playing the roles in the fund as fund managers, administrators, etc. Imagine 604,587 contributors withdraw their contributions and what will happen to all those investments onshore and abroad held under Nasfund. Faceless people in the fund benefit big time while contributors who supposed to get the maximum benefit for their continued contribution from their hard earned income get far too little. It’s about time NasFund must make the contributors have at least hold some portion of stake in the investments. The contributors can’t be spectators.
Cut down on other expense like sponsors, donations, scholarships, advertisments etc that does not concern the members who are not benefiting from so NASFUND can pay higher interest to the members.
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