The Fund's domestic cash portfolio comprises Interest Bearing Deposits (IBDs) and Treasury Bills (TBills) with maturities up to 90 days. As at 31 December 2009 the Fund held a total of K334.4 million in this sector which represented 12.2% of the total portfolio.

The Fixed Interest Portfolio comprises government, semi government, corporate securities and debt including development loans beyond 90 days. As at 31 December 2009 the value of fixed interest securities in the Fund was K462.4 million, which represented 16.8% of the total portfolio.

The Domestic Equities Portfolio comprises listed and unlisted equities. As at 31 December 2009 the Fund's equity portfolio stood at K1,306.7 million. This represented an increase of K97 million or 8% over the K1,209.7 million total for 2008.

Listed Equities

As at 31 December 2009 the domestic listed equities portfolio was valued at K771.5 million. The portfolio increased by K21.2 million for the year. The listed equities portfolio experienced sluggish growth, influenced by the slow revocery of the investment markets int he wake of the flobal financial crisis with decreases in the valud of Bank South Pacific and Credit Corporation Limited shares arising from a general overexposure in the PNG market and resulting selling pressures and the lack of liquidity.

Table below shows the Fund's equity holdings listed on the Port Moresby Stock Exchange (POMSoX) and shares listed on both the POMSoX and the Australian Stock Exchange (ASX):

Unlisted Equities

The value of the Fund' unlisted equities portfolio at the end of the year was K535.2 million, 16.5% of the total portfolio, up from K459.4 million at 31 December 2008.

During the year NSL undertook a share swap, which reduced the Fund's BSP shareholding, and acquired a stake in  Capital Life Insurance Company Ltd. Along with the benefits of equity ownership, the transaction also offers the opportunity of providing NSL members with general insurance products and services in the future.

 

Table: Domestic Unlisted Equities

Unquoted Ordinary Shares	Industry Sector	(%) Holding
Alotau International Hotel Ltd	Hotels	34
Brian Bell & Co. Ltd	Wholesale/ Retail/ Merchants	34
Capital Life Insurance Company Ltd	Insurance	34
Coastwatchers Court Ltd	Property - Residential	65
Capital Way Holding Ltd	Telecommunication	10
Gazelle International Hotel Ltd	Hotels	65
Hunter Ltd	Property - Commercial	30
Kumul Hotels Ltd	Hotels	55
Moki No. Pty Ltd	Property - International	100
Morobe Front Holdings Ltd	Property - Development	100
PNG Water Ltd	Utilities	30
Pacific Building Services Management Ltd	Property - Development	50
Paradise Foods Ltd	Food & Snacks/ Manufacturing	85
Post Courier Ltd	Media	21
SP Brewery Ltd	Manufacturing	20
Toyota Tsusho (PNG) Ltd	Motor Vehicle	4
Westpac Bank Ltd	Banking & Finance	7

The Fund's property portfolio comprises commercial, residential, industrial and vacant land. As of the endo of 2009, the portfolio was valued at K421 million, which represented 15.3% of the total investment portfolio.

Active management of the property portfolio during the 2009 year involved both new and ongoing projects and included the engagement of external specialist project management consultants.

Table: Property portfolio as at 31 December 2009