Papua New Guinea’s largest superannuation funds – Nambawan Super Limited (NSL) and the National Superannuation Fund – have attributed profits to offshore investments and the Bank of South Pacific Financial Group Limited’s strong 2024 performance.
Both funds have seen significant increases in their asset value, members’ contributions, as well as investment returns from their domestic and international investments.
While Nasfund recently revealed that it had reached a K8 billion (US$1/94 billion) milestone after declaring a profit of K848 million(US$206 million) for 2024, NSL’s assets reached K11.2 billion(US$2.72 billion) as it made a profit of about K1.085 billion(US$269 million) last year.
According to Nasfund and NSL, these results were influenced by their investments offshore in diverse portfolios.
Domestically, the performance of BSP and members contributions had a huge impact on their profits.
NSL chairman Richard Sinamoi said its listed equates performed well, driven largely by the strong performance of BSP, Credit Corporation PNG and SP Brewery.
“Additionally, foreign exchange gains, largely given by bank of PNG’s currency devaluation programme, have also contributed to the strong performance of the fund’s offshore investments,” he said.
“Domestic listed equities have recorded unrealised capital gain with BSP accounting for the majority of these.
“CPL shares fell slightly due to the impact of Jan 10 unrest, recording an unrealised capital loss as a result.”
BSP Group chief executive officer Mark Robinson told The National that BSP’s share performance and dividends were an important part of the PNG super funds results for last year.
Robinson said that NSL and Nasfund were among BSP’s large shareholders.
“BSP is proud that the hard work of our staff has resulted in our strong financial performance in 2024,” he said.
BSP recently announced a profit of K1.8 billion(US$437 million), up a healthy 18 per cent compared to 2023.
The Group’s strong results were underpinned by the lift in volumes and revenue in nearly all its businesses, which was offset in 2024 financial year, largely by the K254 million(US$ 61.69 million lift in its operating expenses, compared with 2023.
This increase in operating expenditure was mostly driven by an increase in our investment in technology and modernisation to support our strategic priorities.
NSL chief executive officer Paul Sayer said that the fund hoped that the Government would lift the 35 percent mark offshore investment for superfunds.
