Investment

Government Inscribed Stocks

The Fund has investments in the government bonds issued by the Bank of PNG. The government bond market in the country is inactive due to the absence of the secondary market. The long-term YTM for the government bonds are currently at around 8.5 %. The current yields are at around 11 % for the non-tax exempt and 8.8 % for the tax exempt.

The Fund has not undertaken any further investments in the government bonds since 1997, except for an off-market repurchase from Motor Vehicle Insurance Limited (MVIL) in October 2002.

The Fund has limited its exposure to the government bonds due to the low returns and most importantly the Bank of PNG's reluctance to have put options available for investors like Nambawan Super. This has resulted in the Fund holding the bonds to maturity resulting in the loss of capital.

The Government is now at the initial stage of planning to introduce Index Bonds. The bond will be linked to CPI movements and adjustments will be made to the value of the bond to capture the CPI and compensate the investors accordingly. However the secondary market must still be available to induce investors to take part in this instrument.

The Fund's investments in the government bonds constituted 8.61 % of the total investments at the end of December, 2002 and contributed a return of 12.4 % for the same year.



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		Access your Nambawan Super member database here. >> Click here to login Members Online Database Contact us online by sending us an email now. >> Send Email here Email Us 16 % Interest Rate declared for 2006. New Kiosks locations, working along with POST PNG. Access your member database online now. Latest News Government Inscribed Stocks The Fund has investments in the government bonds issued by the Bank of PNG. The government bond market in the country is inactive due to the absence of the secondary market. The long-term YTM for the government bonds are currently at around 8.5 %. The current yields are at around 11 % for the non-tax exempt and 8.8 % for the tax exempt. The Fund has not undertaken any further investments in the government bonds since 1997, except for an off-market repurchase from Motor Vehicle Insurance Limited (MVIL) in October 2002. The Fund has limited its exposure to the government bonds due to the low returns and most importantly the Bank of PNG's reluctance to have put options available for investors like Nambawan Super. This has resulted in the Fund holding the bonds to maturity resulting in the loss of capital. The Government is now at the initial stage of planning to introduce Index Bonds. The bond will be linked to CPI movements and adjustments will be made to the value of the bond to capture the CPI and compensate the investors accordingly. However the secondary market must still be available to induce investors to take part in this instrument. The Fund's investments in the government bonds constituted 8.61 % of the total investments at the end of December, 2002 and contributed a return of 12.4 % for the same year.