SUPERANNUATION fund Nambawan Super has announced an after-tax profit of K280 million for 2015, a result company chairman Anthony Smaré said was “very positive” in light of challenging economic conditions.

“The K280 million profit for 2015 has enabled the fund to declare a 5.8 per cent crediting rate, which has already been credited to members’ accounts, including the Retirement Savings Accounts (RSAs) of retired members,” he said.

Shifting its investment focus over the past three years from unrealised returns to realised cash flow returns, had softened the impact of the declining economic environment, the fund said, with challenges expected to remain in 2016.

“We strongly encourage all members to continue to save, and to not be distracted from saving by the changing economic climate, with all saving decisions based on a detailed assessment of individual financial circumstances,” the company said.

“Saving remains critical to the long-term financial survival of all our members, and saving remains too important to ignore; either now, or at any time in the future.”

Mr Smaré said the fund had reserved a further 2% crediting rate to mitigate against the economic challenges it was expecting the local and global economy would face in 2016.

Similarly, the Fund will maintain adequate diversity in its investment portfolio, reduce the holding of risky assets, and increase allocation to less risky assets that have value both in the short term and the long term.

“The board and management are continuing their dialogue with the national government regarding the unfunded superannuation liability of K2.07 billion, and achieving an amicable resolution with the national government in the interests of impacted Nambawan Super members is a top priority for the fund for 2016,” the group added.