Savings up

The National Main Stories

By GYNNIE KERO
MORE than 550,000 members of the National Superannuation Fund will be paid an eight per cent interest on their contributions by Monday, says chairman Hulala Tokome.
He announced yesterday that Nasfund recorded a K242.4 million profit in the 2017 financial year.
“Out of that, we are paying eight per cent interest which is going to be credited to members’ accounts,” he said.
Nasfund paid 7.25 per cent interest last year for the 2016 financial year.
“We have also been able to increase our membership by 3.5 per cent – from 537,520 in 2016 to 556,459 in 2017,” he said.
“While we believe members will be pleased with these results under the current circumstances, it is also prudent to caution members not to expect these type of results year on year.”
He reminded members that their Nasfund savings were for the “long term” – to provide a comfortable life when they retired.
“While annual returns from the investment portfolio are subject to market forces and vary from year to year, real returns after inflation to member accounts increase significantly over a longer period through the effect of compound interest and a dedication to investing in assets that provide secure long-term returns,” he said.
“For this year, we will continue the focus on enhancing our member services while actively seeking opportunities to grow membership and our investment portfolio.”
Highlights of the 2017 financial year include:

  • A gross asset value of K4.62bil representing a growth of 6.8 per cent from K4.32bil in 2016;
  • a net asset value of K4.51bil representing a growth of 7 per cent from K4.219bil in 2016;
  • a 14.89 per cent increase in cash income of K322mil compared to K282mil in 2016;
  • an operating expenses of K56.1mil against a budget of K56.9mil resulting in 1.42 per cent savings;
  • a 3.3 per cent increase in active employer base to 2626 establishments;
  • a 9.5 per cent increase in contribution receipts of K493mil from K450mil in 2016. This is the highest ever recorded in the past five years;
  • the appointment of Kina as the fund administrator;
  • a 588 educational and public awareness shop floor presentations to employers and members;
  • the payment of more than K431mil in superannuation entitlements to members including housing advances representing 61,358 transactions. This compares to K456mil paid in 2016 which is a 5.48 per cent reduction in payment outflows to exiting members;
  • the rolling out of digitised services including the introduction of online employer and member portals to facilitate convenient contribution processing and receipt of real time member balances;
  • the introduction of a mobile phone app to access member account details;
  • the introduction of electronic customer queuing system in Boroko with further rollouts around the country;
  • the refurbishment of the iconic Tower (now Kina Haus); and,
  • The focus on core values of prudence and governance in serving members’ and employers’ best interest.