In 2024, SPF maintained a strong investment performance, largely influenced by the country’s economic stability and active investment approaches. Despite global uncertainties, including global inflationary pressures and exchange rate fluctuations, SPF recorded a gross investment income of SCR 236 million which represents a growth of 11.9% compared to 2023.
audited December 2024
As at year-end 2024, SPF’s investment portfolio (the Portfolio) was valued at SCR 4.48 billion. The asset allocation reflected strategic adjustments, with Fixed Income assets increasing by 8% year-on-year, while allocations to Equity and Cash & Cash Equivalents declined by 5% and 3%, respectively. Investment income collected improved across all asset classes, with interest income rising by 34% compared to 2023, rental income increasing by 8%, and dividend income up by 1%. Despite incurring a capital loss of SCR 49 million, the Portfolio achieved a real return of 3.94%, outperforming its long-term investment target of 3%. The Portfolio also demonstrated strong risk management, with a 12-month volatility of 2.14%, well below the target of 8% (with a tolerance band of ±2%).
During the year under review, SPF also reaffirmed its commitment to align its objective with best international practices, ensuring continued compliance with its established frameworks for portfolio diversification and performance reporting. In line with these commitments, the institution onboarded new counterparties and conducted its annual property valuation as per the International Valuation Standard (IVS).
Asset allocation
By the end of December 2024, the Portfolio was relatively well diversified, comprising of 5 asset classes and 9 sector classifications. The portfolio grew by 6% to reach SCR 4.48 billion, from SCR 4.22 billion in 2023. Regardless of ongoing efforts to diversify the Portfolio, the Real Estate asset class maintained its allocation relative to the previous year and remained SPF’s largest pool of investments. These assets accounted for 39% of the Portfolio. Nonetheless, there has been continued efforts to dispose of several earmarked properties.