Nasfund approves 4.5% interest to members

The National Superannuation Fund Limited (Nasfund) has approved an interest-crediting rate of 4.5% equating to over K235 million for the 2020 Financial Year, which has been credited to members’ accounts.

Nasfund Board Chairman, Charles Vee, announced this following the approval of the funds audited results at the find Board meeting on Wednesday March 10, 2021.

The results include a Net Profit of K222.9 million and a Net Asset Value of K5.57 billion for the year ending December 31, 2020.

In a statement Chairman Vee said the results were reflective of what has been the most challenging year for the Fund, particularly against a weakened economy and impacts brought on by the COVID-19 pandemic. 

“In response to these headwinds I am pleased that the Fund has demonstrated once again strong resilience and exceeded its budgeted cash profit after tax of K266 million by K15 million due to tight control on operating expenses and lower tax costs.

The pandemic and other external factors beyond our control adversely impacted the economy which resulted in valuation losses of K155 million across our property and equities investments, including K38 million in additional provisions to comply with international accounting standards (IFRS 9), which was partially offset by foreign exchange gain of K97 million due to the Kina depreciating against other currencies. This resulted in an overall net valuation loss of K58 million which represents an additional 1.10 percent crediting rate, members have missed out on.  

 While the crediting rate of 4.5% has been achieved for our members, we remind members again of the benefit of locking away savings over a long period.  The value of a member’s savings grows significantly through the effect of compound interest and additional contributions”.

I am pleased to inform our members that we continue to meet our investment target of achieving returns above CPI over a rolling five year period which on average is 5.7 percent compared to CPI average of 5.4 percent over the same time. Additionally, over the last five years, Nasfund has paid over K1.27 billion in interest to members and paid out K2.18 billion in superannuation entitlements to its members.

We remind members that your long term Nasfund savings does have its benefits to ensure a comfortable retirement after active employment” Vee said.

Other 2020 highlights include:

  • 2% increase in contribution receipts totalling K575 million.
  • 3% increase in membership base to 604,587 contributors.
  • 7% increase in employer base to 2,576 establishments.
  • 22% increase in superannuation withdrawals totalling K469 million against budget of K384 million.
  • New Logo launch.
  • Opening of a new Member Services Center in Waigani, NCD with plans to open a second branch in Lae.
  • Refurbishment of our Hagen and Goroka offices.
  • MOU signing with the East Sepik Provincial Government to provide superannuation services to cocoa, vanilla farmers.
  • Third successful Employer Awards Evening held.
  • Annual Regional conference held Online and live streamed to over 5,000 participants throughout the country.

The Nasfund Chairman said in 2021, they will continue their focus on enhancing member services, including housing developments while actively seeking to grow the funds membership and new investment opportunities.

“I would like to acknowledge the commitment of our CEO Ian Tarutia, the management team and staff for their hard work and support in delivering commendable results in 2020.”

Loop Author