This 10-year growth has seen K2.13 billion made by the fund which has translated to an average crediting rate to members’ accounts of 11.7 per cent over the same period.
This was revealed today by CEO, Ian Tarutia, during the NASFUND Annual Regional Employer Conference in Port Moresby.
Tarutia revealed to over 200 employer representatives and contributors the growth of the fund.
“In terms of the health of your organisation, you will see that your fund has grown from strength to strength, year in year out in terms of its balance sheet size. And the balance sheet grows because you members are continuously paying in your contributions.
“It’s the function of your board and the investment tea together with the investment managers to invest your contributions wisely so that we are attaining returns that we are desired to achieve. And that how we are growing your fund. If your fund grows so too does your member accounts.
He added “with the income, the net profit that is made by your find as a result of the investment portfolio working for you, a large portion of that income is then translated and paid back to you members.”
Tarutia also presented a measurement of NASFUND performance against the inflation rate and its policy of a return to members of CPI (6 percent ) + 2 per cent (for a total of 8 percent return) which showed the fund had performed very well.
“So the message that I’m sending here is that Your superannuation savings will continue to grow against any index, against CPI, against Inflation. Over the long term you will still see the benefit
Tarutia also highlighted NASFUND’s 2017 outlook which includes:
- Maintaining a positive crediting rate;
- Continuing focus on service delivery;
- Growing its membership;
- Seek quality investments and not quantity; and build on 2016 positive.
Picture credit: Cedric Patjole