Nasfund reports positive but challenging 2015

 NASFUND has reported a challenging but “positive year” in 2015.

Chairman William Lamur said in a statement the board noted external factors such as the slow-down of the global economy and the significant fall of commodity prices impacted the revenue streams of Papua New Guinea-based companies which the fund had investments in. 

“In addition, aside from the effect of El Nino and limited access to foreign currency, surplus of quality property buildings and the lack of secondary market for fixed interest security trades, resulted in valuation losses in equities and bonds,” he said.

Lamur said the Fund had demonstrated a strong resilience to attain positive outcomes with an over-budgeted performance in cash returns from its investments and controlled expenses.

Against this backdrop, the highlights of last year included:

n Gross asset value of K4.07 billion representing a growth of 7.2 per cent from K3.795 billion in 2014;

n net asset value of K3.936 billion representing a growth of 5.8 per cent from K3.719 billion recorded in 2014;

• cash income of the Fund grew from K207 million in 2014 to K257  million;
• valuation losses of K18 million compared to valuation gains K75 million the previous year;
• prudent management resulting 2 per cent savings of operating expense compared to 2014;
• active employer base of 2,409 establishments representing a 12 per cent growth compared to 2150 active employers in 2014; and,
• Decisions on new investments in property and equities totalling over K271 million. 

Lamur said the board had approved a crediting rate of 4 per cent equating to over K144 million to be paid to members’ accounts for the last financial year despite being a challenging year.