NASFUND members to be credited interest

Member accounts of NASFUND will be credited an 8 percent interest following the announcement of the Fund’s financial accounts for 2017.

This follows the announcement of a net profit of K242 million this week.

The crediting interest is an increase from 2016, which the Fund credited 7.25 percent to members.

NASFUND recorded a net profit of K283.47 million, K41.47 million lower than its 2016 result.

However, board chairman Hulala Tokome said the results attained were positive despite yet another challenging year.

Highlights from 2017 include:

  • Net profit of K242.4 million.
  • 8 percent interest to be credited to members’ accounts from 7. 25 percent paid for 2016 financial year.
  • Gross asset value of K4.62 billion representing a growth of 6.8 percent from K4.32 billion recorded in 2016. 
  • Net asset value of K4.51billion representing a growth of 7.0 percent from K4.219 billion recorded in 2016.
  • 14.89 percent increase in cash income of K322 million compared to K282 million in 2016.
  • Operating expenses of K56.1 million against budget of K56.9 million, resulting in 1.42 percent savings.  
  • 3.5 percent increase in total membership to 556,459 from 537,520 members recorded in 2016.
  • 3.3 percent increase in active employer base to 2,626 establishments.
  • 9.5 percent increase of contribution receipts of K493 million from K450 million received in 2016. This is the highest ever recorded over the last 5 years. 
  • Appointment of Kina as Fund administrator.
  • 588 educational & public awareness shop floor presentations to employers & members throughout the country.
  • Payment of over K431 million in superannuation entitlements to members including housing advances representing 61,358 transactions. This compares to K456 million paid in 2016 which is a 5.48 percent reduction in payment outflows to exiting members.
  • Roll out of digitized services including introduction of online employer and member portals to facilitate convenient contribution processing and receipt of real time member balances.
  • Introduction of a mobile phone app to access member account details.
  • Introduction of electronic customer queuing system in Boroko branch with further rollouts throughout the country.
  • Refurbishment of the iconic Tower (now Kina Haus) commenced.
  • Continued focus on upholding core values of prudence and governance in serving members and employers best interest.

CEO Ian Tarutia says the results follow its strategic investment portfolio which has delivered good returns for members.

The NASFUND management says they will be taking strategic investments decision for 2018 to replicate and/or improve its performance for members.

The 8 percent interest will be credited to members’ accounts by the weekend.

The Fund announced it will be hosting its employers’ conference at the end of this year.

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Author: 
Cedric Patjole