To all our valued Nasfund Members,
2021 was yet another challenging year. Containing COVID transmission, treatment, vaccination and keeping our economy going were all day to day topical matters.
For business and a majority of our employers, it was a test of resilience and adaptability under new norms. Business houses have become adept in keeping doors open for trade, maintaining employment, paying tax, superannuation, increased licensing fees, accessing limited forex while seeking and investing in new opportunities in a contracting and distressed economy.
For us at Nasfund, our priority was to keep staff healthy, maintaining services to members, paying out Section 90 entitlements as and when required and ensuring we continued to deliver a positive return on member savings.
Our challenges over 2021 has been the high volume of members applying for a withdrawal of their savings on account of unemployment and retirement which was expected on the back of the Porgera Mine closure and labour shedding across a number of our large employers, including several SOEs. As we did in 2020 we accommodated this by holding a high level of cash.
I am pleased to inform, not one member missed out on receiving their entitlement as and when it was legally due.
Secondly, while new investment opportunities were limited, your Board addressed a number of existing investments that were impacted by COVID and prevailing economic conditions.
While our final audited results will be released in February 2022, I am pleased to report several highlights that reflected our work in 2021;
- Income and profitability to exceed budget.
- Expenses maintained below budget.
- Employees of University of Technology and International Food Corporation voted to remain with Nasfund after issuance of Sect 85 Notice.
- Acquired 98% ownership of Mainland Holdings Ltd
- Support for Loloata Island Resort (Nasfund owns 50%).
- Staff vaccination coverage of 77%.
- Annual Member / Employer Online conference held in April (over 5,000 member viewers)
- High engagement with employers/members. Conducted 540 shop floor presentations covering 29,809 members/potential members.
- 2 consultative engagements with our 7 shareholder peak bodies.
- Membership base increased by 2.5% to 621,283 as at 30 November 2021.
- Employer base increased by 1.1 % to 2697 as at 30 November 2021
- Participated in the Superannuation & Life Insurance Consultative Workshops held in Lae, Buka, Alotau, Kimbe and Kokopo with NSL and Bank of PNG teams.
- Submissions made to the Superannuation & Life Insurance Review (SLIR) team on suggested amendments to the Superannuation Act as well as response to the SLIR terms of reference.
- Participated in the consultations carried out by the Independent Advisory Group (IAG) on the Central Bank.
- Completed annual Board Strategy review.
- Completed annual Strategy Asset Allocation workshop and Risk Management Review
- Lead on Superannuation Industry’s response to Government’s Dominant Industry Player Levy.
2021 is now gone and it is 2022 we must look forward to.
We are not out of tough times, we can still expect the same operating environment in 2022, especially as we head into national general elections in June.
We will maintain focus on doing the simple basics right while positioning ourselves to capitalize on worthwhile opportunities that deliver value for members in 2022 and beyond.
On behalf of the Fund, I assure you of our attention and service at all times.
May 2022 be successful and meaningful for each of you.
Ian A. Tarutia, OBE
Chief Executive Officer
National Superannuation Fund Limited