PacWealth Capital has acquired the AON Master Trust superannuation fund in PNG and rebranded it as PacSuper. Eric Kramer, Chief Executive of PacSuper, tells Business Advantage PNG about the fund’s growth plans and explains why it is different from the incumbents.

Building on its experience in the palm oil sector, PacSuper is aiming to tap into new markets. Credit: NBPOL

Papua New Guinea’s oldest private sector superannuation fund plans to do things differently, with a focus on attracting new members to the world of superannuation – particularly from the agricultural and mining sectors.

Local firm PacWealth Capital acquired the AON Master Trust in PNG fund in May and has rebranded it as PacSuper.

Eric Kramer, Chief Executive of PacSuper, has big plans to grow the fund and add some variety to the local superannuation sector. He tells Business Advantage PNG he expects the fund’s founding principles of good governance and trust will attract more people into superannuation.

“We’ve seen through our global network the long-term benefits of superannuation for individual households, and we genuinely want to be able to provide a service for all Papua New Guineans to be able to participate in,” says Kramer.

PacSuper’s Eric Kramer. Credit: Business Advantage International

“Something that will benefit not only their children but hopefully their grandchildren as well.”

Growing the market

The rebranded fund, launched on 1 April this year, will look to build on the foundations built over the past 32 years. The fund includes members from the airline, agriculture, mining and manufacturing sectors to name a few.

Kramer, who has been involved in the superannuation industry in PNG since 2009, says he is determined to work with the industry for greater access for employees to retirement savings.

“We are not about poaching clients from other funds. We are about building the strongest, most robust and rewarding super fund in PNG for all our members,” he says.

Investment choice appeal

PacSuper’s other key difference is that it offers two currencies to its members – with one fund in Australian dollars and the other in kina.

“We are the only company in PNG that provides investment choice on currency,” says Kramer.

“Traditionally, it’s been the case that senior executives [from Australia] like the Australian dollar fund. They come and work here for five or ten years and their funds are then able to be transferred. But we see more and more Papua New Guineans discovering the benefits of the AUD Fund as well.

“In previous years, the Australian dollar has been less volatile, you have more liquidity and it also enables the Australian dollar fund to invest into other markets that are limited to PNG kina funds, so there is potential there.”

“In addition to the advantage of having currency choice in superannuation with PacSuper, the fund will put renewed focus on ways to increase returns for the members.”

Widening the super net

Kramer is also keen for PacSuper to offer customers choice when it comes to the range of services that they have on offer and have a more “holistic approach”.

“We think that we can provide a fresh set of eyes on the way that PNG super funds approach business processes; for instance, the way that they handle the payments and the contributions,” Kramer says.

The new PacSuper logo. Credit: PacSuper

The fund’s administration services are provided by a separate subsidiary, Pac Solutions, which has the potential to provide similar services to other parties with large memberships, such as landowner companies.

While not without ambition, Kramer is also keen to point out that PacSuper will not be a radical new player.

“Boring in the superannuation world is actually a good thing,” he observes.

“In the end, we’re all about maximising the long-term sustainable returns and benefits for our members.”