Papua New Guinea’s largest superannuation funds, Nambawan Super Limited (NSL) and the National Superannuation Fund (Nasfund), have demonstrated significant financial growth driven by their offshore investments and the impressive performance of the Bank of South Pacific (BSP) Financial Group Limited in 2024.
Both funds have seen remarkable increases in asset values, member contributions, and investment returns, reflecting their effective diversified investment strategies. Nasfund achieved a significant milestone, with its asset value reaching K8 billion (approximately US$1.94 billion) and generating a profit of K848 million (around US$206 million) for 2024. In parallel, NSL reported an asset increase to K11.2 billion (approximately US$2.72 billion) with a profit of K1.085 billion (around US$269 million) during the same period.
The funds’ performance has been heavily influenced by their investments abroad, which yielded robust financial returns from their international portfolios. Additionally, domestic market conditions have been favorable, particularly due to strong contributions from BSP, a major shareholder in both superannuation funds.
NSL chairman Richard Sinamoi highlighted that the fund benefited significantly from the strong performance of local companies, naming BSP, Credit Corporation PNG, and SP Brewery as major contributors to gains in their investments. He also noted that currency devaluation instituted by the Bank of Papua New Guinea contributed to favorable foreign exchange gains.
BSP’s financial results further bolster this positive outlook, with a reported profit of K1.8 billion (approximately US$437 million), reflecting an 18% increase from 2023 due to rising volumes and revenue across its lines of business. Although BSP’s expansion was somewhat tempered by a K254 million (around US$61.69 million) rise in operating expenses linked to technology investments, the overall trajectory remains upward.
Looking ahead, NSL’s CEO Paul Sayer expressed optimism regarding potential changes in government policy, specifically urging a raise in the 35% cap on offshore investments for superannuation funds, which could enhance the likelihood of substantial investment returns.
The promising trajectory of both NSL and Nasfund highlights their effective management practices and strategic planning, setting them up for ongoing success in bolstering the financial security of their members. The proactive and diversified investment strategies employed allow these funds to navigate economic shifts and ensure sustainable growth into the future.
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