investments
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Strategy

The Funds primary purpose is to preserve and maximise superannuation benefits of its Members, through prudent investment management. The Funds 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 Funds 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.

 

 

Investment Categories

  Graph 1: Asset Allocation within the Fund's portfolio
Below are the categories of Investment Pie
Table 1: Composition of Investment
 

 

% Holdings

Asset Class

31-Dec-16

31-Dec-15

Cash

13.1

5.7

Fixed Interest

31.7

33.5

Unlisted Equities

17.1

19.9

Listed Equities

11.6

12.2

Property

11.3

12.7

International

15.2

16.0

Total Portfolio

100.0

100.0

   
 

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