by Jacob Niru – EM TV, Port Moresby
Papua New Guinea’s largest superfund, Nambawan Super Limited has declared a healthy profit of K338 million in its 2014 annual returns.
Board Chairman, Anthony Smare, while announcing the result yesterday, said in result of the significant growth, the superfund has declared a 7% crediting rate to its members’ accounts.
The chairman says the 7% crediting rate is a massive boost for members and their savings with Nambawan Super Limited. He says the crediting rate will be paid into members accounts, including the retirement savings accounts for retired members, while K90 million will be reserved as extra money.
Mr Smare declared that the K388 million profits came as a result of large profits earned through its effective and disciplinary strategy on capital investments.
“Over the last ten years, the company has made significant financial accumulation because of the LNG [project] and other wealth generated by natural resources in the mining industries,” he said.
According to the Chairman, 2014’s results represent the average of annual return of 9.75 per cent over the past three years. Anthony Smare said the overall slowdown in the PNG economy in 2014 had a minimal effect on the performance of Nambawan Super.
This, according to the Chairman, is testament to the tremendous effort from the superfund’s executive leadership and staff performance. As of the end of 2014, Nambawan Super’s net asset value total stands at K4.76million, a growth of 12 per cent from the 2013 audited results.
Total membership also increased in 2014, which boosted the accumulation of total revenue.
Mr Smare says, with the current low world commodity price affecting the level of economic activity in PNG, the superfund has set aside K90 million for the firm’s members’ welfare.
He said the reserved money is to help counter unforeseen challenges over the course of 2015 and onwards. Meanwhile, the Chairman strongly encouraged the public to develop a savings culture and attitude, so that their savings provide could them a better future after retirement.
Jacob Niru is a UPNG Journalism student.