2023 Results
On behalf of the Nambawan Super Board, it is my pleasure to present the 2023 financial results. Following an extremely tough year in 2022, the Fund entered 2023 with even stronger determination and resolve to deliver better results to our Members, and they are as follows;
- Fund Membership grew by 7,909 (3.6%) to 228,319 Members;
- Net Asset Value now totals K9.84 billion, an increase of K848 million.
- Net Profit after Tax is K659 million, an increase of K515 million.
- Following the Board’s approval of the audited financial results, this equates to a 7% interest delivered to our Members.
- Total Member contributions received in 2023 was K970 million.
- Total Member benefit payments paid out to Members in 2023, was a staggering K781 million.
Our Performance
Despite enduring tough local and global economic conditions, Nambawan Super has delivered strong results.
If anything, the success of 2023, compared to those of 2022 is an important reminder to us all that from year to year results will go up or down, but superannuation is a long-term investment.
The 2023 results have been achieved due to a combination of investment earnings received from interest, dividend, and rental income. The Fund’s international assets performed strongly in 2023 as Global markets proved resilient and recovered strongly following the surge in inflation in 2022. Additionally, foreign exchange gains, largely driven by the BPNG’s currency devaluation program, have also contributed to the strong performance of the Fund’s offshore investments.
Locally, the Fund’s assets did not perform as well due to reduced yields from State Securities, lower dividends realised from the Fund’s unlisted equity holdings, and reduced rental income.
The Fund’s listed equities, however, did perform well driven largely by the strong performance of BSP Financial Group despite having to contend with the increased 45% Corporate Banking Tax introduced at the start of 2023.
Members are Nambawan
Looking forward, it is difficult to enjoy the successful results of 2023 with the sobering knowledge that 2024 is already off to a rough start.
Besides the increasing Law & Order issues, PNG is once again facing a fuel shortage, exacerbating existing issues with unreliable power and water supply. These ongoing challenges impact an already struggling population, business houses, and the economy.
Projects in the Oil and Gas sector continue to face set-backs, and these delays have had an impact on the expected returns from the long-anticipated economic boom, similar to those experienced by the country more than a decade ago. The lack of available foreign currency continues to hamper the Fund’s ability to provide stronger results for our Members in the offshore markets, as we are not able to make use of international opportunities, especially as local investment opportunities lag due to the state of the economy.
While NSL maintains a cautious optimism for the future, we recognize the volatile local and global environments we are operating in today and the many challenges that lie ahead. We will remain vigilant as we deliver on our primary goal of protecting and growing our Members’ retirement savings, while we work to support and help PNG’s economy.
We will do this by continuing to look for investment opportunities in the country, as we have demonstrated with the Rangeview Precinct and Moki Business Park. The construction of Rangeview Precinct and the commissioning and construction of Moki Business Park were delivered in the midst of Covid-19, at a time when the PNG economy was extremely depressed.
Rangeview, which opened in mid-2022, represents an investment of over K290 million. Moki Business Park, which reached full completion in September of 2023, represents an investment of over K129 million and will be officially opened later in 2024. The Fund had the courage to make these significant investments at a time when others refrained from taking the risk, injecting much needed capital into the local economy, creating employment for thousands of Papua New Guineans, and keeping families fed.
We will also work to ensure our ‘Members are Nambawan’ by continuing to protect their interests. We will pursue two outstanding matters, these are the;
· K150 million dispute due to a long-drawn-out matter involving China Railway Construction Engineering (PNG) Limited (CRCE) around the construction of the OPH precinct.
· 9-mile land development project, which will provide thousands of jobs, housing opportunities, and infrastructure improvement.
We will also continue to use our position as an industry leader, to influence Policy reforms that benefit all Papua New Guineans, as well as reforms to Tax on superannuation. We will continue to advocate for the repealing of harmful levies that adversely affect the investments we rely on to deliver stronger returns for our Members, such as the unfair Corporate Banking Tax.
Continue to protect your Fund
PNG’s history has taught us that there are always people looking for large pools of money, with or without the right intentions, thinking it can be used for other purposes. Nambawan Super’s assets solely belong to its hardworking Members who, throughout their working life have already contributed to the economy through their payment of Goods and Services Tax and Salary and Wages tax.
Hence the Fund will continue to focus on delivering its mandate which is to protect and grow our Members’ assets and superannuation savings to be used for the sole benefit of our Members’ retirement, and not for any other purpose. It must be protected by the Fund, with the strong support of NSL Members and their families. I encourage Members to prioritize their Superannuation and continue to support NSL in their work to protect and grow this important investment.
In closing, on behalf of the Board of Directors, I would like to take this opportunity to thank our Members for your commitment toward building a financially secure and comfortable retirement, even during these very difficult times. Be rest assured that the Fund will continue to ensure that our Members remain Nambawan in everything we do.
