Superfund pays 7pc interest to members

The National Business

By DALE LUMA
NAMBAWAN Super has this week credited an interest of 7 per cent to the accounts of its 200,000 members, according to chairman Anthony Smare.
Announcing the 2019 financial results yesterday in Port Moresby, he said the fund recorded a record net profit of K504 million, compared to K270 million in 2018.
Smare said the fund had grown from K6.8 billion to K8 billion with net assets of K7.7 billion and total income of K705 million earned from its investments.
He said the fund:

  • received K770 million in contributions from members;
  • paid K464 million in benefits to members;
  • paid K28 million in housing advancement; and,
  • received K30 million paid voluntarily by members.

The results reflect a strong performance by the fund from returns in its investments in what was a difficult year in terms of the economic condition of the country, he said.
“It is an excellent result and you (members) are now going to enjoy that result,” Smare said. “We saw returns come in from our investments and the interest that the government pays us from loans and other companies that we have invested in.
“It’s a good number when times are down but you have to keep putting that money into the fund to make it grow because when the economy gets better, that’s when we will see the valuation returns.”
Smare said the fund had been able to grow through member’s contributions and investment growth.
Its new Super campaign will target those who are traditionally not covered by superannuation to be part of the fund.
He also stressed the importance of voluntary contribution saying it is an incredible tool for wealth creation.
“Voluntary contributions are a great way for you to increase your wealth,” he said.
Smare said just a contribution of K20 a fortnight over 30 years at a rate of return that Nambawan Super has being archiving, can equate to K65,000 in your bank balance when you finish.