This follows the announcement of its financial results for 2018 yesterday.
NASFUND Chairman, Hulala Tokome, also announced that the fund made a profit after tax of K158.7 million.
The NASFUND Chairman said the Board met yesterday to consider and accepted the audited financial accounts for the 2018 financial year.
Tokome said the results were positive in yet another challenging year.
He said the fund had demonstrated a strong resilience in attaining a positive outcome with an over budgeted performance in cash returns from its investments and controlled expenses.
Tokome stated the board has exercised prudency and caution in provisioning for a number of underperforming investments, and this is reflected in the modest crediting rate.
“I must stress here, our profit after tax was also impacted by compliance with international accounting standards, IFRS 9 to the tune of K31 million which was implemented for the 2018 accounts. These are funds which have been held back in provisioning and not allocated to member accounts.
“In addition to the above, we also booked foreign exchange losses of K29 million. During the last quarter of 2018, international equity markets fell which also had an adverse impact on the fund’s profitability.
“While the crediting rate of 3.5 percent is modest, K157 million distributed into member accounts is still a commendable result under our current economic environment.
“Over the last 5 years the average crediting rate paid to members was 7.5 percent, equating to over K1.28 billion. At the same time our fund has also paid K1.9 billion in superannuation entitlements to members. Analysis of our member data show 64 members have over K1 million while 1,521 members have balances between K250,000 to K500,000.
The highlights of the year for NASFUND include:
- Gross asset value of K4.98 billion representing a growth of 6.0 percent from K4.62 billion recorded in 2017.
- Net asset value of K4.75 billion representing a growth of 5.0 percent from K4.51 billion recorded in 2017
- 2 percent increase in cash income of K324 million compared to K322 million received in 2017.
- Operating expenses of K58.3 million against a budget of K58.6 million, a savings of 0.6 percent
- Profit after tax of K158.7 million
- 3.5 percent interest to be credited to members’ accounts, equating to K157 million.
- 0.2 percent decrease in total membership to 555; 1,333 from 556,459 members recorded in 2017.
- 8 percent decrease in active employer base to 2,402 establishments from 2,626 in 2017.
- 5.9 percent increase in contribution receipts of K518 million from K493 million received in 2017. This is the highest recorded over the last 6 years.
- Over 700 educational and public awareness shop floor presentations to employers and members including 4 regional conferences conducted throughout the country.
- Payment of over K437 million in superannuation entitlements to members including housing advances representing 81,000 transactions. This compares to K431 million paid in 2017.
- Completion of Stage 1 of the revitalisation project of the iconic Kina Bank Haus.
- Introduced free access for APP and Online access via Telikom’s 4G Network to support mobile phone app to access member account details.
- 17, 000 members signed up bringing total App and Online access accounts to 28,000.
- Revamped, simplified and strengthened employer defaults management reducing defaulting employers from 27 percent of total employer base down to 18 percent.
- Rolled out initiative of employers remitting both members and employer contributions within 14 days of deductions with positive traction.
- Continued focus on upholding core values of prudence and governance in serving members and employers best interest.
Chairman Tokome said a new strategy for the next five years is a commitment of doing more for their members and focus on the pillars of solution, engagement and innovation.