Monday 02 March, 2015
NASFUND Financial Results for 2014 announced
At its meeting today the NASFUND Board considered and accepted the audited financial accounts for the 2014 financial year. Chairman William Lamur, on behalf of the Board announced the following results:
- Net Asset Value of K 3.719 billion representing a growth of 10.8 % over 2013 audited results.
- Surplus after tax of K 258.465 million compared to K 330.600 million achieved in 2013.
- A 6% increase in total membership to 488,346 members out of which 175,992 were active contributors.
- Active employer base of 2,150 establishments compared to 2359 active employers in 2013.
- Contribution receipts of K 461 million representing a 4% increase from 2013.
- 736 educational & public awareness shop floor presentations to employers & members throughout the country compared to 662 presentations conducted in 2013.
- Payment of over K347 million in superannuation entitlements including housing advances representing 76,984 transactions to members or their beneficiaries.
- The opening of an additional branch in downtown Port Moresby to cater for increased foot traffic
- Opening of a new branch in Manus Province.
- Commencement of the implementation of a new ERP platform to upgrade the core business and financial systems
- Upgrade of network connections to the 15 branches and one service centre around the country.
- Decisions on new investments totaling over K200 million.
- Upgrade of the website and expansion of the Text Bal system to make information more accessible to members
- Ongoing education process for members to understand the importance of long term savings to provide for comfortable living in the later years of life after active employment.
Against this backdrop the Board approved a crediting rate of 8.5% equating to over K264 million to be paid to members’ accounts for the 2014 Financial year. The Board further agreed to hold reserves of 1.72% or K 64 million as a matter of prudency.
Mr Lamur said “The Board expected 2014 to be a more challenging year compared to 2013 and 2012. We acknowledged that economic growth was projected to grow at a slower rate of 5% down from 9% as the construction phase of the LNG wound down and declining prices for PNG’s commodity exports prevailed. We noted the difficulty faced by potential new members in securing employment due to the unavailability of suitable jobs around the country. Conversely new employer registrations decreased while a number of existing employers were deregistered due to the closure of business. Thus we expected our investment returns and membership growth to be less than our results in 2013. In addition to this our client service capacity was severely tested by
the increase in the number of members accessing their savings on various grounds allowed under the Superannuation Act. Under these circumstances, I am pleased with the outcome which I am sure will be appreciated by members.”
Looking ahead in 2015, Mr Lamur reminded members that their NASFUND savings were for the long term. While annual 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 longer period through the effect of compound interest and a dedication to investing in assets that provide secure long term returns.
On the Operational front, timely Client Services to members, implementation of a new ERP system and working with the regulator, Bank of PNG to improve systems and process was a focus for the Board and Management in 2015.
“Striving to be better than we are now will serve members interests and that is what we are all about" Mr Lamur said.
Photo caption: NASFUND Chairman, Mr William Lamur who made the announcement on behalf of the Fund.
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