Trustee fund records K10.7 million profit for 2021 financial year

The National Business

COMRADE Trustee Services Ltd (CTSL) has recorded a profit of K10.7 million for the 2021 financial year — a K13.9 million decrease compared with K24.6 million in 2020.
It announced that net assets for the fund as of Dec 31 last year was K615 million.
It was K618 million the previous year.
Statutory manager Peter Aitsi said CTSL had approved a two per cent interest to be deposited into each member’s account.
“This will be paid in to member accounts by the fund administrators over the coming week,” Aitsi said.
“The management of CTSL are mindful of the challenges ahead including, but are not limited to:

  • RISING energy and food costs, along with the increasing interest rates adding to the imported inflation to PNG, which is having a direct impact on increasing prices of domestic goods and services;
  • SYSTEMIC risks that will continue to diminish yields and adversely affect liquidity for domestic assets;
  • IMPACT of the Government’s Additional Company Tax (ACT) on Bank South Pacific which will reduce dividend income and trigger a proportionate write down in member net assets;
  • IMPACT of exchange rate movements on overseas investments;
  • IMPACT of an aging demography in the Funds membership; and,
  • LOST investment opportunity from CTSL carrying the State’s Unfunded Liability.

“The operating environment for 2021 remained difficult as globally, countries continued to deal with the public health impacts of the Coronavirus and the consequential negative flow on impacts to their economies,” Aitsi said.
Some great work done in 2021 include:

  • STRENGTHENING the balance sheet to sufficient levels to withstand asset price shocks;
  • WORK to improve the soundness of the accounting and finance function;
  • MAINTAINING relationships with the Department of Treasury;
  • CONTINUING work in educating members about planning for retirement; and,
  • WORK to refurbish the fund’s commercial and residential properties.