PHILIPSBURG–St. Maarten Pension Fund APS Managing Director Nadya Croes-van Putten welcomed Minister of Finance Perry Geerlings to APS headquarters on Friday, July 20, for an introduction presentation to the fund.
The visit included a tour of the office and staff introductions. With a current asset value of approximately NAf. 692 million guilders, APS makes local and international investments as a means to secure its funds for current and future pension payments to its 4,400-plus participants. Geerlings was informed about APS’ financial position, investment policy and strategy, and received an overview of the project portfolio.
As per June 2018, the total APS pension assets of 692 million guilders consisted of 369 million guilders in the local investment portfolio and 248 million guilders in the international portfolio. As per December 31, 2017, APS had a rate of 6.97 per cent return on investment. The APS minimum criterion for investments is 5.5 per cent.
Croes-van Putten said on Sunday, “APS’ main goal is to achieve a good return on investments with an acceptable amount of risk. Not every ‘good’ project fits the risk appetite of a pension fund. Pension funds are conservative by nature, more so than banks. Pension funds require solid investments that match the reserves required to make future payments to participants.”
In her presentation to Geerlings, Croes-van Putten indicated one of the challenges of expanding the current coverage ratio of 101.5 per cent (the Central Bank of Curaçao and St. Maarten (CBCS) minimum norm is 100 per cent) to the APS target of 105 per cent, is that pension system reform is needed to increase APS’ “future-readiness.”
“Participants live longer, hence more funds are needed for a longer period as age levels increase,” she stated. Some 930 persons are now receiving their APS pensions.
Another challenge is NAf. 39 million guilders owed by Government, which cannot be invested to make a return on investment and grow the pension fund’s assets.
“Our investment policy and strategy is fueled by our aim to take the driver’s seat in the re-development of St. Maarten. We have to mobilise ‘bottled up’ capital in pension funds, banks and insurance companies in St. Maarten.
“With the establishment of the St. Maarten Investment Bank, we can use the available local capital to boost the recovery of the country’s economy and the development of the country’s overall infrastructure. By giving direction to local investments, we will get more control over the direction of our economy and our country. However, we must aim for sustainable, value-added projects in vital sectors of the economy and emphasise quality over quantity to be successful,” Van Putten told Geerlings.
Croes-van Putten said stakeholders view APS as a trusted partner. She further elaborated on the improved internal and external communication policies and strategies, as stakeholders indicated the need for more engagement and information regarding the investments made by APS.
APS’ current endeavours include the financing commitment with St. Maarten Medical Center (SMMC) in the new hospital and the rebuilding of the Maho Resort complex, as partner in the First Caribbean International Bank loan to the resort. The APS management and board believe the establishment of the first St. Maarten Investment Bank will be a “game-changer” for APS and St. Maarten.
Ongoing real estate development projects include the Mary’s Fancy Plantation monument renovation and Oryx Hills residences in Cay Hill.
Geerlings indicated during the introduction the importance of APS’ independence and expressed confidence in the integrity and professionalism of the APS team.
According to APS, Geerlings was “very interested” in the progress of the projects, requesting detailed information on the local and international investment portfolios. APS will follow up with several additional financial reports and project-specific presentations in the coming weeks and months.
Geerlings wishes to build a “strong, long-lasting” relationship with APS. By law, APS is accountable to the Minister of Finance.
Source: The Daily Herald https://www.thedailyherald.sx/islands/79063-aps-presents-structure-plans-to-min-geerlings
View comments
Hide comments