Reason for difference in Nasfund balances..does this make sense?

Reason for difference in Nasfund balances..does this make sense?

Nasfund contributor
Nasfund contributor

May 4th, 2012, 5:13 am #1

Reason for difference in Nasfund balances
Source:
The National, Friday 4th May 2012

SEVERAL Nasfund members have been querying why their balances have gone down after a 2% interest was credited to their accounts.
Members’ total balance as at Dec 31, 2011, included an interim crediting rate of 3%, which was applied before the actual annual interest rate is determined by the board.
This rate is based on the expected year-end net profit and is usually a conservative estimate of anticipated annual interest.
As a result, balances were rolled over into 2012, including the 3% interim crediting rate.
The 2011 interest based on last year’s financial results was 2%. Since this is less than the interim rate of 3%, an adjustment had to be done.
The new interim interest rate is now 1.5% and this has been adjusted retrospect to Jan 1, 2012.
Therefore, members will see a reduction in the 2011 interest component of their total balance.
It is important to note that principal member and employer contributions are untouched.
We assure members that your funds have not gone missing nor has there been a write down.
The adjustment was necessary as the interim rate cannot exceed the annual interest crediting rate.
For further clarification or information, please contact the following:
. Team Leader of Operations
Phone: 3241826
Email: daopi@nasfund.com.pg
. Acting Chief Operating Officer
Phone: 3241844
Email: cgilichibi@nasfund.com.pg

Nasfund
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Rod
Rod

May 5th, 2012, 6:25 am #2

Newspaper adverts by NASFUND already clarified this. No one lost any money. The advert explained it fully.
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knk
knk

May 5th, 2012, 12:00 pm #3

Does anyone know why the interest credited to the NASFUND members was very low at 2% for 2011?
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knk
knk

May 5th, 2012, 12:00 pm #4

Newspaper adverts by NASFUND already clarified this. No one lost any money. The advert explained it fully.
Does anyone know why the interest credited to the NASFUND members was very low at 2% for 2011?
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Erik
Erik

May 6th, 2012, 6:14 am #5

Source: The National

The audited accounts revealed:
• Net assets of K2.338 billion representing an increase of 7.5% from a net asset value of K2.221 billion recorded in 2010;
• Reserves of K97.5 million representing 4% of net asset value before distribution;
• Operating profit before provision for contingent liabilities and related impairments of K44.662 million compared to K308.658 million recorded in 2012.
In the area of membership, the fund recorded:
• Active membership base of 153, 397 representing a growth of 13.8% increase from 140, 545 members in 2010;
• Active employer base of 2,107 employers representing an 8% increase from 1,943 employers in 2010;
• Average monthly contribution inflows of K28 million from employers, representing an increase of 13% compared to K24.7 million received month in 2010; and
• Payment of K166.28 million to 55, 086 members in unemployment, retirement and housing advance benefits, compared to 74, 323 members withdrawing in 2012, representing a reduction of 25% of members withdrawing from the fund.
Chairman Mel Togolo said the year 2011 was a very challenging year, not only for Nasfund but the superannuation industry.

Mel Togolo… a very challenging year, not only for Nasfund but the superannuation industry
“From an industry perspective, our respective investment portfolios were adversely impacted by currency appreciation against the Australian dollar, peaking property valuations and softening of share values in our listed equities,” he said.
“These were the main drivers of capital gains in the past, which saw funds in PNG recording high profits and delivering double digit returns.
“Those days are over and with the advent of the global financial crisis still lingering in the western world, its effect is now being felt by our own economy in which we operate and invest.
“Despite these setbacks, our industry has been resilient and strong enough to continue delivering positive crediting rates compared to super funds in Australia, for example, who are still experiencing high negative returns.”
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Nasfund contributer
Nasfund contributer

May 7th, 2012, 9:23 am #6

Nasfund, please explain our profit

AS contributors, it really makes one’s mind wonder how we take a back ward paddle.
Can’t believe the process of adjusting the contributor’s interest earned to balance the Fund’s books.
At best, a dividend is only declared and paid up after the audit process and board declares it
How can you make wild assumptions and allocate a certain percentage as interest and later on change it.
In the first place, you should not be doing this and the contributor’s expectations should not be placed on a bouncing string.
We in PNG are known for testing out new ideologies and this must be a clever accountant at work at NASFUND. For a non-accountant, this is clearly an indication that something is wrong here and may be coming up with fancy reasons to substantiate write downs.
Its all crap if you have sent out an updated figure to the contributors already and then adjust it again with a negative gain.
Whether it is interest on contributions or the contributor’s savings, they still end up in the same basket for the contributor regardless of the terminology used here.
Is it a cover up for the Kokopo Saga – Government Treasury Bills deal?
We have not heard yet of the out come for this up until now.
Task Force Sweep and independent auditors should be quickly checking the NASFUND books and let the contributors know its findings.
Many Papua New Guineans lost 50 per cent of their hard earned savings a few years ago and we don’t want to go down that path again.
NASFUND is known for doing this and it raises eye brows and certainly is driving some contributors crazy here.
Contributors are mindful of the recent investments in the country triggered by the LNG projects as well as off shore – hotel investments in the Pacific etc and have been having reasonable expectation but the latest news is an unripe fruit that is hard to swallow. .

Bush Mathematician 1+1=3
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