A total of $128,726,582 has been credited to Solomon Islands National Provident Fund (SINPF) members as of 30 September 2024.
This comes after Minister of Finance and Treasury, Manasseh Sogavare on Monday officially announced a crediting rate of 4% for SINPF’s members for the financial year ending 30 June 2024.
Thats a drop of 2% compared to last year’s crediting rate.
Apart from that, Minister Sogavare also announced a special death benefit of SBD$8500.
This is an increase of $500 on 2023 amount of $8,000.
Speaking at the occasion at Heritage Park Hotel, Minister Sogavare said in the past five years has been quite challenging period for their country’s national economy and the Fund.
And he highlighted the challenges of protecting our citizens against the COVID 19 pandemic, the November 2021 riots and the external impact of the Ukraine war.
Minister Sogavare said from the SINPF Chief Executive Officer’s financial overview of the Fund’s financial performance for the financial year ended 30 June 2024, he noted that certain parts of the Fund’s equity investment portfolio valuations has softened, due to market and industry volatility.
He said the business fundamental of these SINPF assets remain strong and firm.
SINPF CEO, Mike Wate said the fund’s draft financial performance softened in the year ending 30 June 2024 recording a gross income of $252,225,456.
He said this down from last financial year audited gross income of $354,658,863.
“The reduction was primary driven by the reduction of our listed and unlisted equity fair value revaluation gains from $147,340,381 recorded in 2023 to $35,841,902 recorded in the 2024 financial year.
“You may recall that all our traded market listed equity prices and the international currencies they are denominated in, are revalued in their market traded prices on 30 June of each year,” he said.
Wate said for their unlisted domestic equities, unlisted international equities and domestic investment properties, these are also revalued annually by external international independent competent valuers.
“For our unlisted equities (South Pacific Oil), Solomon Telekom Company Ltd, Heritage Park Hotel etc, are valued by international accounting firm Deloittes based out of Australia.
“After adjusting for operating and member expenses of $108,808,837, the Fund has an operating surplus of $143,420,619 that is available for crediting to members today,” he said.
Moreover, Wate said the unaudited net asset has increased by 5.5% from 2023 $3,984,714,971 to settle at $4,204,122,029 in 2024.
Mr Wate said this mainly due to the positive investment performance of the Fund, annual revaluation surplus from property investments and increased investments in government securities.
Further to that, Wate said implementation of the $116 million DFAT town houses and the executive apartments expansion is in progress with completion expected in March 2025 for the DFAT town houses.
“The Board has commenced the implementation of constructing its new four level commercial building at its ex-Home Finance property on the Hibiscus Avenue adjacent to the Qoloni building.
“Potential new property investments are currently being assessed for approval by the Minister of Finance and Treasury,” he said.
Minister Sogavare thanked the Board, management, and staff of the Fund for looking after and managing their member’s fund prudently.
A total of 6,644 new formal members were registered during the year, up from the previous year’s level of 5,881.
Below are the annual credit rates for the past years.
2023 – 6%.
2022 – 2.65%,
2021 – 6%,
2020 – 3.7%,
2019 – 8.5%,
2018 – 6.5%.
