NSL highlights struggles

NAMBAWAN Super Ltd (NSL) chief executive officer Paul Sayer says from an investment and economics point of view, this year has been the “perfect storm” for investors.
“Globally, we are seeing a high inflation environment brought on by supply chain disruptions, rising fuel and energy prices due to the Russia-Ukraine war, and rising interest rates from Central Banks,” he said.
“The combination of all these factors makes the risk of a global recession a very real possibility.
“PNG is, unfortunately, not spared from these tough economic conditions as we are also impacted by high inflation, expected to be between 6 per cent and 8 per cent for 2022.
“The high local inflation is a result of our reliance on imported goods which as a result has raised our local cost of living putting a strain on many local businesses and slowing our country’s economic growth.”
Sayer said NSL was “working hard to maximise our profits and minimise potential losses against the backdrop of these challenging economic conditions”.
“Currently, we have seen the value of our offshore investments reduce by approximately K250 million due to the drop in equity market values,” he said.
“If the markets do not recover, then our members can expect a 3 per cent – 4 per cent lower crediting from these changes in value alone.
“We are also expecting short-term volatility meaning there will be significant increases and decreases in the international equity markets, however our investments in the international markets have proven invaluable in providing good returns for our members.”
“Over the long term, we intend to stay invested as we anticipate the global markets to recover and continue generating good returns.”