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Investment policy shift of the Solomon Islands national provident fund board, the country's only superannuation scheme

Ha’apio, Michael O. and Ha’apio, Lilian Viva (2017) Investment policy shift of the Solomon Islands national provident fund board, the country's only superannuation scheme. ELK Asia Pacific Journal of Finance and Risk Management, 8 . NA. ISSN 0976-7185

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The Solomon Islands National Provident Fund (SINPF) is managed by its board of directors (BOD) and influenced by government policies. Despite vibrant growth in assets and its investment portfolios, SINPF has yet to fully realize its primary objectives to its members. Its primary objective has been to assist members still in employment with loans to acquire homes, and to provide a lump sum payment or pensions after employment. This study has investigated why the previous BODs have diverted the SINPF primary objective as social benefit to members to more economic benefits. The study has used mainly qualitative information to examine the operations of the fund and BOD over the past decades. We also interviewed current and formers members and employees of the fund to get insight information of the fund. The study has found that the fund has progressively diverted its primary objectives, from direct benefit to members through personal loans and investment options to corporate-focus investment portfolios from which members can benefit, indirectly, only if the institution’s main source of profit is its aggressive corporate investment policy. The study concluded that whilst the BOD is mandated to invest, on behalf of members, the funds received through members’ contributions, they must not compromise the SINPF primary objective to ensure that members benefit directly from these investment initiatives. BODs are obliged to make proper and sound loan assessments when approving loans to these corporate borrowers.

Item Type: Journal Article
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HC Economic History and Conditions
Divisions: Pacific Centre for Environment and Sustainable Development (PACE-SD)
Depositing User: Generic Email
Date Deposited: 07 Mar 2018 23:14
Last Modified: 07 Mar 2018 23:14

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