Sunday, April 4, 2010
PNG major super fund declares K191 million profit
Chairman of the Nambawan Super board of directors Sir Nagora Bogan (second from left) and some board members after the announcement on Wednesday. Picture by Mary Pia'afu of Nambawan Super.
By ALPHONSE BARIASI
MAJOR superannuation fund Nambawan Super has weathered the global financial meltdown and declared a "solid" profit for 2009.
The good news also translates to a 10 per cent interest crediting for the super funds' 113, 564 members throughout the country.
Chairman Sir Nagora Bogan announced on Wednesday that Nambawan Super made an after tax profit of K191 million for the past financial year. The 10 per cent interest to be credited to members' accounts equates to K236.5 million.
All members can expect their accounts to be credit with the new interest by end of next week. Sir Nagora said in a press statement that determining the annual interest rate is a very serious decision for the board of directors.
"The audited financial statements of the fund for the year and all aspects that have a bearing on the financial outcome have been considered, not just the after tax profit figure. The board makes sure proper accounting standards are met. It also factors in economic forecasts for the next few years to make sure it sets aside sufficient reserves to meet the prudential requirements set by the Bank of PNG."
While a double digit interest cediting has been approved for the year, reserves have increase to K74.7 million from the 2008 levels of K66.6 million.
The chairman also announced that in spite of the difficult investment conditions, the fund's assets stand at K2.83 billion, an increase K210 million from 2008.
The 2009 income of K249 million was attributed to good performance in interest earnings, property revaluations, international shares and exchange rate benefits arising from the drip in value of the kina.
"The fund has been prudent, responsible and conservative in the valuation of our investments. This is reflected in only 33 per cent of our total income being unrealized 'paper profits," Sir Nagora said.
Nambawan Super's success is attributed to its strong investment portfolio, 17 per cent of which is in property.
Port Moresby's central business district for instance, holds a number of prime properties owned by Nambawan Super. The latest addition is a nine storey office building.
Nambawan Super's other significant investments are in SP Holdings (20 per cent), Kumul Hotels (55 per cent) and Brian Bell group of companies plus a few others.
The funds' investment in the hotel and tourism industry includes the Alotau International Hotel in partnership with the Airways group of hotels and the Gazelle International Hotel rising from the home of the famed Queen Emma in Kokopo.
Earlier this week, Kumul Hotels Ltd announced the development of its new Holiday Inn Express hotel and apartments in the premises of the existing Holiday Inn in Port Moresby.