Nambawan Super Chairman, Reg Monagi has assured members that their funds are safe and reminded members that Superannuation is a Long Term investment.
Mr Monagi made these remarks when announcing the Fund’s 2020 financial results, which were significantly impacted by the Coronavirus and an embattled PNG economy. The Fund made a net profit of K89 million allowing the Fund to declare 1% interest which has already been credited into members’ accounts.
“Despite the low crediting rate, the Fund’s net assets grew by 6.2% due to continued strong member contributions and now stands at K8.14 billion.”
“While 2020 was a lower than average investment performance, compound average returns over the past 5-years have been 5.7%, almost a full percent over CPI for the period, which means real returns to members.”
“The Fund took steps to reduce the risk of a negative return, including delaying non-essential projects and tightening expenditure wherever possible.”
“The tough economic climate has carried over to 2021, but we will continue to manage the Fund to maximise returns within our risk tolerance.”
“While some years returns will be greater or lower than others, in the long term members’ retirement savings will grow.”
“Indeed, for most members, the time to retirement is many years, and in that time they should experience varying returns but long-term gains.” Monagi said.
Read more in our July edition of Nambawan SuperTok newsletter.