Nasfund Announces Exceptional Returns for 2025

The Trustee Board approved the financial statements, reporting a record Net Profit After Tax of K1.08 billion and a Net Asset Value now exceeding K9.45 billion.  

In recognition of this exceptional outcome, Board Chairman Mr. Christopher Elphick announced that the Board has approved an interest crediting rate of 13% for 2025. “This means more than K1 billion will be credited to our members’ accounts this weekend - the highest distribution in Nasfund’s history. It is a clear demonstration of our continued commitment to strengthening the long-term financial wellbeing of our members. 

Crossing the K9.45 billion Net Asset Value mark represents a major milestone for Nasfund. Strong membership growth, disciplined cost management, and solid investment performance collectively contributed to a year of outstanding progress. Notably, the Fund has surpassed K1 billion in profit after tax, reflecting both operational efficiency and sustained portfolio strength.  

Membership and employer participation continued to rise in 2025, with a net increase of 28,340 members, bringing total membership to 744,213, and 87 new employers joining the Fund, lifting the total employer base to 2,978. Over the five-year period from 2021 to 2025, the Fund achieved an average annual return of 8.91%, outperforming the national CPI average of 3.56%. This means members’ retirement savings grew, on average, 5.35% above inflation over the period.  

Nasfund enters the final year of its current three-year strategy cycle, which prioritizes:  

• Governance and trust, keeping the highest standards of transparency, accountability, and stewardship to protect members’ retirement savings and confidence in the Fund. 
• Portfolio optimization, anchored by consistent and disciplined investment decisions  
• Growth and penetration, reflected in rising membership and employer numbers  
• Superannuation education and inclusion, developed in collaboration with stakeholders to strengthen superannuation literacy nationwide  
• Ways of working, through improved governance, engagement, and service delivery  
• Data governance and optimization, enabling personalized services through improved member insights  

Key Financial Highlights for FY2025  

• Cash income: K554 million (Budget: K544 million | FY24: K499 million)  
• Valuation gain: K580 million (FY24: K487 million)  
• Foreign currency gain: K141.6 million (FY24: K5.7 million loss)  
• Operating expenses: K88 million (FY24: K75 million)  
• Net profit after tax: K1.08 billion (FY24: K899.68 million)  
• Net assets: K9.45 billion (FY24: K8.12 billion)  
• Contributions received: K856 million (↑8% from FY24: K793 million)  
• Member benefit payments: K611 million (FY24: K591 million)  

• Interest credited: K1.1 billion (FY24: K839 million), including K17 million credited to members who exited during 2025  

  Nasfund's Chief Finance Officer, Ms. Debbie Oli said, “The gross return across the portfolio was 15%, from which 1.5% was absorbed by expenses and 0.74% by taxes, resulting in the 13% crediting rate. Portfolio performance was supported by interest income, valuation movements, dividend income and property rentals, which collectively remained consistent with 2024.”  

  Key contributors included:  

• BSP Financial Group: 3.4%  
• Credit Corporation: 1.6%  

• Offshore equities: 3.3%  

  Together these sources contributed 8.3% to the gross crediting rate.  

  A major shift from 2024 results came from offshore investments, where the Fund recorded an FX gain of K142 million (1.7% of the gross crediting rate), compared to a K5.7 million loss in 2024. This improvement was supported by the uplift in FX availability for offshore investment in 2025. Nasfund’s offshore portfolio increased from K1.39 billion to K2.1 billion, with international investments now representing 21.8% of NAV, within prudential limits and below the Board approved ceiling of 25%. The devaluation of PNG’s currency also supported foreign currency gains, though these will reduce if the Kina strengthens.  

  Operating expenses remain tightly managed. 

  Of total expenses:  

• 36% are fixed costs (Fund Administration fees, Investment Manager fees, Bank of PNG regulatory charges)  
• 35% relates to staff costs  

• 28% are controllable expenses  

  Nasfund’s Chief Executive Officer, Mr. Rajeev Sharma says, “This fiscal discipline ensures more of the Fund’s earnings are returned directly to members.” Mr. Sharma went on to explain that Nasfund’s Total Expense Ratio (TER), calculated as Total Expenses ÷ Average Net Assets, remains the lowest among PNG super funds, ranging from 1.01% to 1.15% between 2021 and 2025. While TER differences may appear small, their long-term impact is significant a fund operating at 1.10% TER spends 18.5% less than a fund operating at 1.35%, allowing more earnings to compound into member balances.  

  Member Services, Digital Transformation & Strategic Initiatives  

  Nasfund processed 72,268 benefit payment claims in 2025, totaling K611 million, compared to 78,008 benefit payment claims totaling K591 million in 2024. Over the last five years, the Fund has paid K2.87 billion across 407,821 claims, demonstrating robust liquidity.  

  Digital transformation continued through:  

• Launch of the Superannuation Calculator  
• Deployment of the Nasfund Chatbot  
• Release of multiple superannuation education videos  

• Deployment of an award-winning AI Powered Vendor Invoice Management Automation Solution (2025 Innovation PNG Awards – Large Business category)  

  Key partnerships strengthened through:  

• A MoU with BSP Financial Group to streamline member experience  
• Investment in MiBank to expand services to rural and informal communities  
• Growth of the Membership Discount Program (MDP) to more than 180 partners  

• Expansion of Employer to Employer (E2E) partnerships to more than 20 partners 

  Nasfund also reopened its flagship Boroko Service Centre in 2025, with plans underway to reopen a permanent branch in Wewak, East Sepik Province. Meanwhile, the Funds e-Branch continues to enhance digital accessibility and efficiency.  

  System Challenges and Advocacy Priorities  

  The Fund continues to advocate for improvements across PNG’s superannuation framework, including:  

• Removing the 15employee threshold for compulsory superannuation coverage  
• Reviewing PNG’s regional high tax rate on superannuation funds  
• Assessing contribution adequacy, unchanged since 2002  
• Reexamining unemployment withdrawal provisions to minimize long-term erosion of balances  

• Adoption and implementation of the 2022/23 Superannuation and Life Insurance Review recommendations. 

  Nasfund also highlighted concerns regarding the gender gap in superannuation:  

• Women make up 193,000+ members, but balances decline significantly with age  

• By retirement, women’s average balance is just K7,000, over 60% lower than men  

  The Fund is promoting voluntary contributions, flexible savings options such as Eda Supa, and enhanced financial education to help close this gap.  

  Operationally, Nasfund reduced its unallocated contributions from K66 million to K48 million in 2025, including reducing aged items from K28 million to K19 million, reflecting improved employer compliance and internal processes. However, 427 employers (14%) remain in default, impacting members’ interest in earnings due to delayed contribution remittances. 

  CEO Sharma added that while FATF grey listing does not alter Nasfund’s financial reporting requirements, it can influence how international institutions assess Papua New Guinea’s overall risk profile. He explained that any material impact on Nasfund would arise only if global credit rating agencies or correspondent banking partners revise their assessments of PNG, which could lead to increased compliance obligations, slower crossborder transactions, or higher transaction costs. 

  He noted that global analysis shows grey listing typically increases a country’s risk premium and heightens scrutiny from international financial institutions, underscoring the importance of maintaining strong governance and transparent processes across the superannuation sector.  

  Outlook  

  Papua New Guinea’s economic outlook remains cautious. While the non‑resource sector has continued to record consistent growth of around 4% per year, supporting broader economic resilience, overall national performance is still heavily influenced by developments in the extractive sector. Nasfund typically benefits when major resource projects are fully operational, through stronger rental income, higher contribution flows, and greater market stability. 

  Whilst we have witnessed good result from overseas investments and depreciation of Kina in FY 2025, we should be aware that international events, like current conflict in middle east, grey listing and change in foreign exchange rates against PGK can have adverse impact on valuations and profitability in coming years. 

  In his closing remarks, CEO Rajeev Sharma reiterated that Nasfund’s purpose remains unwavering: to protect and grow the retirement savings of its members. He emphasized that behind every account is a worker, a family, and a future that relies on the decisions the Fund makes today. 

  “As we move forward, our focus remains on disciplined investment, responsible cost management, stronger partnerships, and continued innovation that enhances the experience for our members and employers. The progress achieved in 2025 demonstrates what is possible when strong governance, strategic thinking, and a commitment to our members come together. At Nasfund, we are steadfast in one goal ensuring every member is ready for tomorrow.” 

  Nasfund Chairman, Mr. Christopher Elphick, acknowledged the stewardship of the Board and extended his sincerest appreciation to former Chair, Ms. Tamzin Wardley, for her leadership. He also recognized the oversight of the Bank of Papua New Guinea and expressed gratitude to employers and members for their continued confidence and trust in the Fund. 

  In closing, Mr. Elphick thanked CEO Sharma, the executive team, and staff nationwide for their dedication and commitment in delivering these strong results.