On Thursday April 27, Nambawan Super Limited (NSL) announced its 2022 Financial Results. The super fund’s net profit for 2022 stands at K144 with 1.6 per cent interest credited to member accounts.
A significant drop in returns for the super fund given that in 2021 NSL declared a net profit of K526 million and credited member accounts with a 6.5 per cent interest.
At the announcement, NSL Chief Executive Officer Paul Sayer highlighted the fund’s positive valuation gains.
“This positive result can be attributed to good valuation gains made by the likes of SP Brewery, OPH, Kumul hotels and Paradise Foods. These gains however, were largely offset by unrealized valuation losses from other investments such as things like our Rangeview and Moki Industries.
Sayer said it is important to note that these two large investment projects are long-held assets that NSL committed to, to see through the expected long term returns.
He explained that accounting rules requires NSL to measure their assets in shorter-term 12-month cycles thus explaining the fall in values in two of their most asset investments, Rangeview Precinct and Moki Industries.
NSL Chairman Reg Monagi said, “While both these investments may currently be experiencing lows in terms of valuations, we are confident that as the economy recovers, they will be key assets in generating returns for our members over the long term.”
Sayer echoed these sentiments, “Remembering we are a long term investor, we are confident that the valuations of these two investments will improve.”
“These investments were commenced during a period of time of COVID, one of those investments has effectively been only operating for six months, so its early days and yet we’re asked to value that particular investment, so we expect to see these coming back over the long term.
“We certainly have the courage to make those decisions to invest than we’ve seen others refrain from taking on risks and we did so at a time when the local economy was actually needing people to actually take those steps forward to invest into the economy.
“Through these two particular projects much needed capital was invested into the local economy with flow-on effects. Those job creations and the improved sale of goods continue today. As active long-term investors, we’ve not stopped investing during the tough times, and we continue to support our local economy all the while focused on securing the best possible returns for our members over the long term,” added Sayer.