Despite tough economic conditions in 2016, a major superannuation provider has managed to achieve solid financial results.
On Thursday, NASFUND announced its results for the 2016 Financial Year – the highlight, a net profit of K283 million – this figure representing an increase of 87% from 2015 results.
Chairman, Hulala Tokome, on behalf of the Board, stated that the results were positive in yet another challenging year.
External factors such as the slowdown of the global economy and limited access to foreign currency continued to impact the revenue streams of Papua New Guinea based companies in which the Fund had investments in.
In addition, surplus of high quality property buildings resulted in valuation losses across the property portfolio. However, this was mitigated by valuation gains in fixed income securities and equities.
Chairman Tokome stated that the Fund had demonstrated a strong resilience to attain positive outcomes with an over budgeted performance in cash returns from its investments and controlled expenses.
Some key highlights of 2016 are:
1. Gross Asset Value of K4.34 billion representing a growth of 7.2 % from K 4.05 billion recorded in 2015.
2. Net Asset Value of K4.22 billion representing a growth of 7.4 % from K3.93 billion recorded in 2015.
3. Net profit of K 283.47 million representing an increase of 87% over 2015 audited results of K 150.9 million.
4. Increase in total membership by 4% to 537,520 from 515,535 members recorded in 2015.
5. Employer base of 2,540 establishments representing a 5% growth from 2015.
6. Contribution receipts being member and employer contributions of K 451million.
7. Payment of K 456 million in superannuation entitlements in over 74,000 members transactions.
On the back of these achievements the Board approved a crediting rate of 7.25% equating to over K 265.5 million to be paid to members accounts for the 2016 financial year.
“Above all, striving to be better than we are now and continuing to uphold members’ interests is your Board’s focus. This is what we are all about,” said Mr Tokome.