The Fund’s primary purpose is to preserve and maximise superannuation benefits of its Members, through prudent investment management. The Fund’s investment strategy (Investment Strategy) guides the investment decisions of the Fund, with the guidance of KFM, as the Licenced Investment Manager (LIM) for the Fund. The Fund’s objective is to provide an after-tax return of at least +2% per annum, above CPI, with no more than one (1) negative return, in five (5) years. The headline CPI for Papua New Guinea for 2015 was 6.4%.
Investment Portfolio Performance
The Fund’s investment portfolio increased to K4,899.1 million as at 31 December 2015, an increase of K240.20 million or 5.2% from K4,658.9 million at end of December 2014. The increase in the portfolio was mainly due to investment income of K361.5 million, the K97.6 million received for partial repayments for unfunded liabilities
from the government of Papua New Guinea (PNG), and partially offset by the net withdrawal from the Fund. The investment income is primarily attributable to the following: (i) the gain from the valuation of listed equities, and unlisted equities, (ii) dividend and interest income, and (iii) foreign currency gains from valuation of international
investment. However, the investment income was also somewhat
offset by the valuation loss on bonds, amongst other factors.
|Graph 1: Asset Allocation within the Fund's portfolio|
|Below are the categories of Investment|
|Table 1: Composition of Investment|