Audited Financial Accounts for the 2016 Financial Year -NasFund Press Statement
PRESS STATEMENT – Feb 23, 2017
At its meeting today the NASFUND Board considered and accepted its audited financial accounts for the 2016 financial year.
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 PNG 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.
Against this back drop the highlights of 2016 are as follows:
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.
8. 983 educational and public awareness shop floor presentations to employers and members throughout the country compared to 773 presentations conducted in 2015.
9. Upgrading of Lae branch to a 66 seat capacity with a modern touch.
10. Upgrading of Boroko service centre to a 90 seat capacity with a modern touch.
11. Upgrading of Lihir branch to a prime location.
12. Opening of a new service centre in Bialla and Wabag.
13. Better management of liquidity to ensure withdrawing members were paid their rightful entitlements.
14. Completion of a new ERP platform to upgrade our core business and financial systems.
15. Decisions on new investments in property and equities totalling over K 81.2 million.
16. Investments in Fixed Income (Treasury Bills, Government Inscribed Stocks) of K1.46 billion.
17. Ongoing education processes for members to understand the importance of long term savings to provide for comfortable living in the later years of life after active employment.
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.
The Board further agreed to hold reserves of K 91 million or 2.36% of member funds as a matter of prudency.
Looking ahead in 2017, Mr Tokome reminded members that their NASFUND savings were for the long term and about of quality of life after active employment or in retirement. Members should be actively thinking and planning their future. I also remind members, while returns from the investment portfolio are subject to market forces and vary from year to year, real returns after inflation to member accounts increase significantly over a long period through the effect of compound interest and a dedication to investing in assets that provide secure long term returns. This is where the real benefits is derived for members.”
“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.
On this note I would like to sincerely congratulate our CEO, Ian Tarutia, management and staff of NASFUND for their commitment and hard work over 2016 in delivering these results.
Approved for release by:
Note: members can expect their accounts to be credited by next Tuesday 28th February 2017.
Photo (left to right): CFO, Rajeev Sharma; Chairman, Hulala Tokome, CEO, Ian Tarutia OBE
Nasfund February 23, 2017 3.55 pm