NASFUND REACHES K24 BILLION ASSETS

CAPTION: NASFUND Chief Executive Officer Mr Rajeev Sharma

BY RAYLEEN WANJIMAN

PAPUA New Guinea’s superannuation has reached a major milestone, growing to around K24 billion in total assets.

Speaking at the Nasfund Business Breakfast in Port Moresby, the Chief Executive Officer Rajeev Sharma said the industry has expanded significantly from one billion kina since 2000.

He says the growth reflects increased participation, with close to one million members now contributing across all superannuation funds.

With that Nasfund has recorded strong financial growth over the past five years, with its net asset value increasing from K5.9 billion to K9.4 kina

He Emphasised that the fund processes between K72,000 to K80,000 transactions annually that is significantly higher than other superannuation funds in the country.

Meanwhile CEO Rajeev Sharma also acknowledged the strong performance of key investments commending Bank South Pacific for being the backbone of all the superannuation funds and continues to play a major role in delivering returns to members.

Rajeev says the continued expansion of the sector highlights the important role superannuation plays in supporting the country’s long-term economic development.

CEO Sharma also mentioned more than 50% of annual withdrawals are made under unemployment provisions and is concerning.

He says current laws allow members to access their savings after just three months of unemployment or fully withdraw after 12 months, placing significant pressure on superannuation funds.

Mr Sharma warns this practice is reducing members’ retirement savings, with a large portion of account holders holding less than K10,000

He is now calling for a review of the system to minimise early withdrawals and ensure Papua New Guineans have enough savings for retirement, especially as the country currently does not provide a national pension scheme.