Soldiers’ retirement fund earns K10m

Business, Normal

The National, Friday July 20th, 2012

DEFENCE Force Retirement Benefit Fund has posted a net after tax surplus of K10 million, according to fund manager Comrade Trustee Services Ltd (CTSL).
The fund for the full-year realised a net after tax surplus of K10,046,412, which represented a fund earning rate of 4%, although it was a reduction of K10,752,118 or 52% from the previous year’s surplus of K20,799,530.
CTSL chairman Chris Alu said yesterday the fund performed exceptionally well compared to other pension funds in the region, despite the global financial and economic crisis last year.
Alu attributed the performance of the fund to the country’s continuing economic growth stimulated by the LNG project.
He said the majority of the fund’s assets were invested in PNG with significant exposure to domestic local exchange.
This proved effective in avoiding a very poor outcome during the global economic turmoil experienced last year.
Alu said despite this good performance, members of the fund should expect the global economic turmoil to continue on for two more years, which may result in a negative growth.
He cautioned them not to expect any double digit returns or expect a repeat of the 2011 results.
Alu said despite enjoying a relatively stable political environment during the past years which had benefited the fund to some degree, the same could not be said about the domestic economy during 2012.
He added it was susceptible to and could be influenced by global economic forces, which could cause negative growth in the fund.
Alu assured members that as PNG entered a period of uncertainty and fear caused by the global financial crisis, the CTSL board would do its primary duty to protect the member’s savings.