BY NED GAGAHE
The SINPF Board has approved four domestic investments and one offshore investment amongst the other approved investment portfolios for the current financial year 2022.
The board met ahead of the official announcement of crediting rate last Friday.
CEO Mike Wate highlighted that the current financial year has been one of ‘markets up and down’ both globally and locally, ‘creating uncertainties in an already challenging investment environment for the Fund to carry out its planned investment activities.
“Domestically, amidst the limited available investment opportunities, the Board approved a total of $20 million new term deposit placements; $10milllion with Pan Oceanic Bank (POB) and $10million with its new wholly own Credit Financial Institution, Solomon Finance Ltd (Our Finance) at the industry’s best premium rates of 3.0% and 3.5% respectively.” CEO Mike Wate said.
On development bond, Wate revealed that the board had approved for the purchase of $120 million development bond.
“The board sold its previously acquired $60 million development bond to the Central Bank of Solomon Islands (CBSI) to part finance the purchase of this new bond at the same rate of 5%.” Wate said.
Wate added that the board also approved to finance a shareholder’s loan of $13.4 million to its subsidiary Solomon Telekom Ltd during the year at an interest rate of 5%.
He also revealed that the board had purchased additional Euro Units in the listed Euro Vanguard Index Funds totalling around $9.4 million. That was financed from the Fund’s ANZ Singapore EURO cash account.
“Against a backdrop of extreme external market volatility and capturing the opportunity left by the steep share market falls, the board purchased additional euro units in the listed Euro Vanguard Index Funds totalling around $9.4m.” Wate stated.
Meanwhile, CEO Wate revealed that the funds asset has declined by 5.9 % from 2021 value of $3.935 billion to $$3.700 billion in 2022.
He said this was mainly due the large negative 2022 annual valuations.