Super fund to pay members

 NAMBAWAN Super Limited has credited its members a 5.8 per cent crediting rate following an after-tax profit of K280 million in the last financial year.

The members’ accounts included the Retirement Savings Accounts.

Board chairman Anthony Smaré said: “The fund declared a profit of K280 million which is a very positive result for Nambawan Super’s members when considering the challenging economic conditions experienced by Papua New Guinea and the world in 2015.

“The fund will reserve a further 2 per cent to mitigate against expected continued economic challenges that local and global economy would face this year. 

“Nambawan Super’s net asset value (total members funds under management) now totals K5.17 billion.”  

Smare said the profit result was a consequence of the fund’s disciplined and carefully considered investment strategy, particularly the fund’s shift of investment focus over last three years from unrealised returns to realised cash flow returns which softened impact of declining economic environment.   

“2016 promises to be a very challenging year, for members, for the fund and for the country,” he said.

“We strongly encourage all members to continue to save, and to not be distracted from saving by the changing economic climate, with all saving decisions based on a detailed assessment of individual financial circumstances. 

“Saving remains critical to the long-term financial survival of all our members and saving remains too important to ignore, either now or at any time in the future.  

“Similarly, the fund will maintain adequate diversity in its investment portfolio, reduce the holding of risky assets, and increase allocation to less risky assets that have value both in the short term and the long term.”  

Smare said the NSL board and management were continuing their dialogue with the Government regarding the unfunded superannuation liability of K2.07 billion and achieving an amicable resolution in the interests of impacted members was a top priority for the fund for this year.

The 5.8 per cent payment was a good news to the members.