Nasfund Announces 2021 Full Year Results

10 March 2022

Nasfund is pleased to announce its audited results for the year 2021.

The 2021 audited financial statements was approved by the Board at its meeting on Thursday March 10, 2022 and include a Net Asset Value of K5.9 billion and a net profit of K363 million for the year ending December 31, 2021.

Following these results, the Nasfund Board approved an interest crediting rate of 6.5% for the 2021 Financial Year, which will be credited to members’ accounts this weekend.

Chairman Charles Vee said the Fund had demonstrated a strong resilience under current economic circumstances to attain positive results, with an above-budget performance in contributions, cash income and valuation gains from investments as well as effective cost management on operating expenses.

In the coming days, over K363 million will be allocated into over 623,000 member accounts.

“I am pleased to inform our members that we continue to meet our investment target of achieving returns above CPI over a rolling five year period which on average is 5.7% compared to CPI average of 4.7% over the same time. Additionally, over the last 5 years, your Fund has paid K2.3 billion in superannuation entitlements to members”.

Main highlights for 2021 include:

• Cash income of K423 million compared to budget of K407 million.
• Valuation income of K72 million against loss of K58 million in 2020.
• Expenses of K64.5 million compared to budget of K72 million.
• Net profit after tax of K363.3 million.
• Total Assets of K6.03 billion.
• Net Assets of K5.94 billion.  
• Employer receipts of K589 million compared to K574 million received in 2020.
• Increase in member withdrawals of K586 million compared to K469 million paid in 2020.
• 52, 625 new members registered resulting in a 3% increase in total membership to 622,938 members.
• 137 new employers registered resulting in a 4.8% increase in total employer base to 2700 employers.
• 961 shop floor presentations compared to 240 conducted in 2020.
• 80% vaccinated workforce.
• Successful retention of two employers after issuance of a Sect 85 transfer notice initiated by another fund.
• Opening of a service center in Maprik, East Sepik Province.
• Opening of a service center in Porgera, Enga Province.
• Participation in the Superannuation and Life Insurance Review workshops conducted throughout the country by Bank of PNG.
• Increase in targeted economic sector engagements through MOUs with specific Special Economic Zone sectors and identified provincial governments.
• Launch of CellMoni in partnership with Digicel for convenient contribution by members.

“This year, we are continuing our focus on enhancing our member services while actively seeking opportunities to grow membership and new investments. This includes a focus on providing more value for our membership, at the same time growing their retirement savings.” Mr Vee said.

“We remind members that your long term Nasfund savings will always benefit you by ensuring you have a level of financial comfort upon your retirement from active employment” Mr Vee said. Member accounts does increase significantly over a longer period of time through the effect of compound interest and a dedication to investing in assets that provide secure long term returns.

It would be remiss of me not to mention the Governments’ Market Concentration Levy on BSP and its impact on our investment in BSP in terms of future dividend payments and shareholding value. We caution members that if this new levy is effected this year, this will have an impact on the returns members can expect to receive in 2023. We stand by our position in asking Government to rescind this decision which we believe is not in the best interest of Nasfund members.

I would like to sincerely thank our CEO Ian Tarutia, management and staff for their commitment and hard work in 2021 in delivering commendable results in this challenging economic environment.”

Authorised By:

Charles F. Vee

Chairman