Written: 8 March 2018

PORT MORESBY, March 08, 2018: Papua New Guinea’s largest super fund, Nambawan Super Limited defied PNG’s tough economic conditions by announcing a healthy profit of K406 million. Nambawan Super Board Chairman Anthony Smaré when making the announcement said “Board is pleased with this result for its members considering the extremely challenging economic conditions experienced in 2017. The strong results were achieved as the result of our disciplined diversification of our investment portfolio and our focus on good governance.”
“Our strong result will enable the Fund to declare an 8% crediting rate, which will be paid into member’s account, including Choice Super and the Retirement Savings Accounts (RSAs) of retired members. We know our members and their families have struggled with the country’s tough economic situation and we hope that the Fund’s performance gives them comfort knowing that their retirement is a little more secure.

Financial Highlights

  • Net Asset Value totals K6.41 billion
  • Net profit for the year 2017 was K406 million compared to K404 in 2016
  • International investment contributed 37% of the Fund’s total profit
  • The fund is well positioned to capitalize on any improvement in the country’s economic position

Chief Executive Officer Paul Sayer when commenting on performance said: “Our overall return this year of K406 is a testament of our structured and strategic asset allocation.”
Mr Sayer said: “The investment returns achieved across the portfolio during 2017 demonstrates that a sound mix of assets, wisely selected and carefully monitored, is a sensible strategy for a superannuation fund.”

“As a profit to members fund we understand the importance that good governance brings to the investments and those will deliver great results for members. Nambawan Super during 2018 will continue to look to improve good governance of its investment portfolio with particular focus on unlisted shares and listed shares that we own to improve return ultimately to our members.”

Mr Smaré also encouraged: “In these tough times, I say to our members – continue to save and put additional voluntary contributions and how it can maximize their returns. I call also to private companies and entrepreneurs in all sectors to think seriously about joining Nambawan Super and benefiting from our strongly performing investment portfolio – contact our call centre on 1599 who are standing by  to help your with your queries or visit our website www.nambawansuper.com.pg .”

Mr Smaré also outlined some of Nambawan Super’s operational highlights for 2017.

Operational Highlights

  • Total membership increased by 7% from 2016 to 174,000 members
  • Voluntary members contribution increased by 40%
  • 1,93 members have taken housing advances to build their own homes
  • Fund secured court decision to order Government to pay unfunded exits of over K230 million to over 5,000 Government employees who have exited the public service since March 2016
  • Regional call centres now operational in Kokopo, Lae and Waigani
  • Our Technology platform Case 360 is now fully functional in all branches meaning that members forms can be viewed and actioned in the head office within 24 hours regardless of where in the country they are lodged
  • Nearly 50,000 members use our SMS and Online E-Services
  • Over 10,000 of our members use our NSL mobile app
  • Our Branch expansion continues with Kerema opened in March 2017, and Daru now operational and due to be opened next month.

Regarding the issue of the Stat unfunded exit payments Mr Smaré said: “the State currently owes over 5000 members who have exited the State’s employment since March 2016 over K230 million.

Since the court ruling in January 2018 confirming the State’s obligation to pay, NSL has held numerous meetings with the State to progress ways in which the State can meet their obligation to their former employees. We are working hard to help the government satisfy this obligation – we are willing to accept a government bond or substantial interests in State Owned Entities in part or full settlement of the debt provided it complies with our strict investment and governance criteria.”

Mr. Smaré, on behalf of the Board, commended Nambawan Super Limited’s Executive and staff for the Fund’s hard work and contribution to the 2017 results.

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