Nasfund contributors will all get a 9% slice from dividend of K584 million

Friday, 8 March 2024, 11:50 am

From Left to Right: Chief Financial Officer, Debbie Oli, Chairwoman TAmzin Wardley and Chief Executive Officer, Rajeev Shamar during the announcement of the Nasfund's 2023 financial results (Supplied: Nasfund)

Private employees’ superannuation fund revenue doubled in the 2023 financial year, the biggest winners are the thousands of contributors who will see a 9 percent interest credited to their retirement savings.

In Port Moresby on Thursday, Nasfund's management and board revealed the positive after-tax audited net profit of K597 million, compared to K256 million revenue in its 2022 financial year.

On the back of these results, the Nasfund Board gave approval of interest crediting rate of 9%, where over K584 million will be distributed into over 680,000 member accounts this weekend.

An interim credit rate amounting to K9.4 million has also been allocated to members that have exited the superfund during the year.

“It is wonderful to be able to announce some great news for our members, in what has been a difficult time for many,” Nasfund Chairwoman Tamzin Wardley highlighted the tough economic climate citizens are experiencing.

The positive financial outcomes were significantly influenced by key factors such as above budget performance in cash income, and valuation gains of K180 million, a substantial improvement compared to the loss of K44m last year. Additionally, a net foreign exchange gain of K85 million was recorded, in contrast to a loss of K40m in the prior year. These factors contributed to a total valuation gain of K265 m which equates to 4.08 % of the 9% crediting rate for the members this year.

The Main highlights for 2023 Financial Year [FY] include:

•           Cash income of K485 million compared to budget of K432 million (FY22: K493 million income)

•           Valuation gain of K180 million (FY22: K44 million loss)

•           Foreign currency gain of K84 million (FY22: 40 million loss)

•           Expenses of K74 million compared to budget of K82 million (FY22: K72 million)

•           Net profit before valuation of K415 million against Budget of K278 million

•           Net profit after tax of K597 million (FY22: K256 million)

•           Total assets of K7.13 billion (FY22: K6.35 billion)

•           Net assets of K7.07 billion (FY22: K6.30 billion)

•           Employer receipts of K706 million, 9% higher than collected in 2022 (FY22: K650 million)

•           Member withdrawals of K534 million (FY22: K546 million)

•           34,415 new members registered resulting in a 5% increase in total membership to 688, 169 members (FY22: 653,754)

•           Gross employer base increased by 7% to reach 3,585 employers (FY22: 3,020)

•           Reserve K31 Million to 34 million