The Solomon Islands National Provident Fund (SINPF) has announced a record financial performance for the year ending 30 June 2025, posting a net profit of $330.5 million, driven by strong returns from domestic subsidiaries, government securities, and international equities.
During the announcement of the 2025 crediting rates at Heritage Park Hotel yesterday, SINPF General Manager Michael Wate highlighted the Fund’s financial and operational performance, stating it had delivered “a very strong positive result.”
This result underscores the importance of prudent investment decisions and resilience in a volatile global market.
“For the financial year ending 30 June 2025, the Fund recorded a draft gross income of $430 million against the previous year’s $252.2 million,” Mr. Wate said.
“After operational and member costs, this returned a net profit of $330.5 million—representing a 6.6% net return on our $4.59 billion investment portfolio.”
Strong Investment Drivers
According to Mr. Wate, dividends from major subsidiaries and equity investments were key contributors.
“South Pacific Oil Limited returned $70 million, Solomon Telekom $43.78 million, BSP Financial Group $8.82 million, UBS Australian Fund $2.49 million, and Solomon Submarine Cable Company $0.84 million,” he revealed.
“Altogether, these equities contributed more than $125 million in dividends to the Fund.”
Government securities also played a bigger role.
“Our investment in sovereign short and long-term debts brought in $30.64 million this year, up from $25.79 million in 2024,” Mr. Wate said, adding that Solomon Airlines’ government-guaranteed loan repayments added another $1.37 million.
A major boost came from fair value revaluations.
“The fair value of our unlisted domestic and offshore equities, listed equities, and currency positions rebounded strongly, returning more than $208 million compared to just $35.8 million last year,” he said.
Membership and Benefits
Formal membership continued to rise, with 6,998 new members joining in 2025, pushing the total to 152,560.
“Our active contributing members increased by 3%, from 59,871 in 2024 to 61,688 this year, with contribution balances reaching $3.25 billion,” Mr. Wate said.
On benefits, he noted the Fund’s growing payouts.
“A total of 7,789 benefit payments worth $376 million were made to formal members, mostly retirees aged 50 and above,” he said.
“This compares with 7,554 payments worth $342 million last year.”
Informal Sector: youSave Growth
The youSave scheme—which supports informal workers—also expanded despite a slight dip in new sign-ups.
“This year, we onboarded 6,082 new youSave members, bringing total membership to 49,836, up from 43,768 in 2024,” Mr. Wate said.
“Gross savings reached $107 million, while net savings rose by 18% to $50.7 million.”
Benefit payouts to youSave members also increased.
“We paid out $12.5 million in benefits to 11,262 members, compared to $10.6 million to 9,508 members in 2024,” he confirmed.
Liquidity and New Investments
The Fund ended the year with strong liquidity.
“We recorded a net contribution of $40.3 million, with free cash settling at $284 million by year-end—up from $213.7 million last year,” Mr. Wate said.
“These funds are earmarked for potential new investments and to cushion any short-term surge in member withdrawals.”
Key new investments in 2025 included:
- $10m capital injection into Solomon Finance Ltd
- $70m in government development bonds
- $33.66m for Soltuna’s cold storage expansion
- $50m for the acquisition of King Solomon Hotel via Kings Hotel & Resort Ltd
- $6.7m in Papua New Guinea government securities
Outlook
Looking ahead, Mr. Wate said the Fund remains optimistic but cautious.
“The Solomon Islands economy has recovered and is growing, with strong government commitment to support further expansion,” he said.
“However, downside risks remain in both the global and domestic economies. Our 10-Year Strategic and Business Plan (2024–2034) will help us manage these risks and ensure we continue to deliver above-inflation crediting rates for our members.”
Read Full Speech by SINPF CEO/GM, Michael Wate here
