NAMBAWAN Super, Papua New Guinea’s largest superannuation fund, has recorded a 17.7 per cent fall in profits to K338 million in 2014, down from the K410.6 million recorded the year before.
In its announcement, the Fund said it had experienced a tremendous year of change and development in 2014.
“The changes in PNG’s investment climate, exchange rate as well as fluctuating overseas investments and a number of delays in completion of property construction projects has had an impact on returns,” the Fund said.
Company chief executive Garry Tunstall said that these were short-term issues – immaterial for what is a long-term investment fund, and noting the group had still been able to declare a sound profit for its members.
“The investment returns achieved across the portfolio during 2014 demonstrated why a sound mix of assets, wisely selected and carefully monitored, is a sensible strategy for a superannuation fund,” he said.
“The good results in part of the portfolio balanced out the impact of lower returns in other asset classes.”
Nambawan chairman Anthony Smaré said the group would declare a 7 per cent crediting rate, to be paid to members’ accounts, while also putting K90 million into reserves – to counter any unexpected challenges.
“Nambawan Super will be making sure that the investment portfolio is as safe as it can be by maintaining diversity so that the portfolio will do well in all conditions by reducing risk and increasing the allocation to safer assets,” he said.
“In the last 12 months, the Fund has been able to overhaul the Fund’s investment strategy, install a robust governance framework for board and management, increase capacity building for employees and implement engagement strategies for members, all designed to ensure that Fund continues to thrive and meet the expectations of its members in the long term.”
Nambawan Super’s net asset value now totals K4.76 billion, representing a growth of 12% over 2013 audited results, while total membership contributions increased by 14.2% from 31 December 2013 figures.