Nambawan Super makes K274mil in taxing year

The National Business

By CLARISSA MOI
NAMBAWAN Super Limited made a profit of K274 million last year and declared a crediting rate of 3.7 per cent for members yesterday.
Chairman Anthony Smare said that last year was challenging, with a combination of difficult economic conditions and foreign exchange pressures leading to strains in the performance of companies in which Nambawan Super had interests in.
“In terms of our performance for 2018, it was stronger in a lot of areas and it’s really a legacy of the work we’ve done in the last five years to really strengthen the fund,” Smare said.
“We saw our cash income from investments increase from K379 million to K445 million, but we had to withstand the impact of K59 million fair value loss on valuations and international market fluctuations and income tax of K33 million as well as operational costs.”
Smare said the profit had enabled them to declare a 3.7 per cent crediting rate which will be paid to members’ accounts, including retirement savings account.
The rate of 3.7 per cent was below last year’s consumer price index (CPI) of 4.3 per cent.
“The fund has averaged a return of 7.5 per cent against average CPI of 4.6 per cent, demonstrating that the fund is able to achieve a consistent return for members above CPI, representing real growth in their contributions.
“The fund’s consistent high returns when compared to other superannuation funds is continuing to attract more private sector employers to the fund.
“NSL’s growing asset base and high contribution to withdrawal ratio puts the fund in a strong position to explore new investment opportunities that are expected as PNG’s economic climate improves, especially with a range of big projects due to come online
“Our 2018 financial result endorses the effectiveness of Nambawan Super’s disciplined investment strategy.”
Smare noted that the fund now had a:

  • Net asset value of K6.9 billion;
  • management expense ratio of 1.06 per cent;
  • total contribution of K499 million for 2018; and
  • Total member payout of K252 million.

“Even in tough times our members’ savings for their future have grown,” he said.
“I encourage all members to continue to save, no matter what the economic conditions are.
“Superannuation savings are one of the few things our members can rely on for their long-term financial wellbeing when they no longer have access to a regular fortnightly income.”
Chief executive Paul Sayer said: “We’ve made sure that each year we continue to grow our members’ money from the profits we receive through interest, dividends, and rentals.”