Papua New Guinea’s largest superannuation funds, Nambawan Super Limited (NSL) and the National Superannuation Fund (Nasfund), have reported impressive financial growth attributed to their offshore investments and the exceptional performance of the Bank of South Pacific (BSP) Financial Group Limited in 2024.
Both funds have experienced notable increases in their asset values, member contributions, and investment returns, reflecting their diversified investment strategies. Nasfund reported a significant milestone with its asset value reaching K8 billion (approximately US$1.94 billion) and a profit of K848 million (around US$206 million) for 2024. Meanwhile, NSL’s assets climbed to K11.2 billion (about US$2.72 billion) with a profit of K1.085 billion (approximately US$269 million) for the same period.
The performance of these funds has been significantly influenced by their offshore investments, which have performed well due to strong financial returns from international portfolios. Additionally, domestic market conditions also played a crucial role, particularly the strong contributions from BSP, which is a significant shareholder in both superannuation funds.
NSL chairman Richard Sinamoi noted the fund benefited from the robust performance of local equities, with BSP, Credit Corporation PNG, and SP Brewery driving gains in their listed investments. He attributed part of the strong investment results to foreign exchange gains stemming from the Bank of Papua New Guinea’s recent currency devaluation program.
BSP’s own financial report highlighted a remarkable profit of K1.8 billion (approximately US$437 million), marking an 18% increase over 2023, boosted by rising volumes and revenue across its various business sectors. BSP’s growth was somewhat moderated by a K254 million (around US$61.69 million) increase in operating expenses, primarily due to investments in technology and modernization initiatives.
Looking ahead, NSL’s CEO Paul Sayer expressed hope that the government would raise the 35% cap on offshore investments for superannuation funds, which would further enhance the potential for robust investment returns.
This bullish outlook for both NSL and Nasfund underscores the effective management and strategic foresight, positioning them well for continued success in enhancing the financial security of their members. The proactive strategies employed by these funds, particularly in diversifying their investment portfolios, are crucial to navigating economic fluctuations and ensuring sustainable growth in the long term.
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