Super fund hikes profit

 NAMBAWAN Super’s profit last year grew by 17% to K410.6 million from its 2012 audited results, company executives reported yesterday.
Last year’s figures also included a 14% increase in the fund’s net asset value to K4.268 billion, with membership increasing by 5.7% during the same period.
Its board had approved a crediting rate of 11.25% equating to more than K419.5 million payable to members’ accounts for last year.
In 2012, Nambawan Super paid 11% to members.
Nambawan Super Ltd’s acting board chairman Anthony Smare said: “The board is pleased with the overall results of the fund for its members.
“2013 was another good year for the fund under the stewardship of outgoing chairman Sir Nagora Bogan.
“The outcome enables the fund to declare an 11.25% crediting rate, which will be credited to members’ accounts, including the retirement savings accounts (RSAs) of retired members.
“The result endorses the effectiveness of Nambawan Super’s disciplined investment strategy, which has the objective of “providing an after tax return of at least +2% above CPI with negative returns in no more than one in five years.”
Chief executive Garry Tunstall said: “The investment returns achieved across the portfolio during 2013 showed why a sound mix of assets, wisely selected and carefully monitored, is a sensible strategy for a superannuation fund.
“The good results in part of the portfolio balanced out the impact of lower returns in other asset classes”.
Smare also highlighted a number of circumstances which contributed to the strong results for 2013, which may not be repeated this year.
He said the inflation rate last year was very low and it was forecast that inflation this year could be significantly higher.
Smare said: “Nambawan Super will be making sure that the investment portfolio is as safe as it can be by maintaining diversity so that the portfolio will do well in all conditions by reducing risk and increasing the allocation to safer assets.”