GREAT BAY--Local investments held by the General Pension Fund of St. Maarten (APS) continue to generate disappointing returns, with the domestic portfolio earning just 2.65 percent in 2025 compared to 15.95 percent internationally, according to the General Audit Chamber. The Chamber's latest audit identifies longstanding project delays, underperforming properties and uncertainty surrounding several investments, renewing concerns about how effectively pension funds invested locally are being managed.
In its October 2026 compliance audit of APS's 2025 financial statements, the Audit Chamber reported that domestic investment returns declined from 3.36 percent in 2024, while international returns increased from 10.50 percent to 15.95 percent.
The disparity comes despite an improvement in APS's overall financial position. Total pension assets reached approximately XCG 1.037 billion, while the fund's coverage ratio increased from 114.1 percent to 116.2 percent, comfortably above the minimum required level.
APS recorded an overall investment return of 9.23 percent, exceeding its long-term minimum target of 4.18 percent. However, the Audit Chamber emphasized that several local investments continue to experience delays, generate limited income or face uncertainty regarding their future development.
The findings raise questions about the effectiveness of investments intended to generate returns for pension participants while contributing to St. Maarten's economic development.
Among the investments examined is Mary's Fancy Plantation, acquired in 2014 with plans to develop an eco-hotel. Despite obtaining permits and undertaking preparations, the project was placed on hold in 2023 because of rising costs and difficulties securing an operator.
The investment currently generates no income. Its book value was reduced from XCG 8.11 million in 2023 to XCG 5.66 million in 2024. Management responsibility was assigned to the St. Maarten Investment Company (SMIC) in late 2025 and formalized in early 2026.
The Professional Office Park, acquired in 2016, presents another unresolved development issue. Although its two existing commercial buildings generate rental income, plans to develop an adjacent vacant lot have not materialized. The Audit Chamber again called for a concrete decision on whether the property should be developed, redeveloped or sold.
Similarly, land adjacent to the Government Administration Building, originally intended for a multi-level parking garage, remains undeveloped despite being transferred to APS in 2016. Approximately XCG 403,000 has been spent on preparatory studies and related work, but no firm development decision had been made by the end of 2025. The property, valued at XCG 4.86 million, generates only limited occasional income.
The Oryx Hills housing project in Cay Hill has also undergone changes from its original investment model. Of the 62 housing units, 23 had been sold by the end of 2025, while 20 were under lease-to-own agreements and 13 were rented. Its carrying value declined to XCG 16.25 million, which APS attributed to completed property sales.
The Audit Chamber expressed particular concern about APS's financing of Rainforest Adventures St. Maarten.
In 2025, APS recorded an additional impairment of XCG 2.96 million and a separate accounting write-off of XCG 3.93 million associated with the restructured loan.
Cumulative impairments reached XCG 11.25 million, reflecting concerns that part of the outstanding debt may not be recovered. The net carrying value of APS's portion of the loan stood at XCG 10.12 million at year-end.
Although the tourism attraction's St. Maarten operations have improved, uncertainty remains concerning future debt repayments and related financial obligations.
The Audit Chamber also examined APS's investment in SMIC, which was restructured in 2025 through the conversion of financing into equity.
SMIC reported a positive result of approximately XCG 293,000 in 2025, reversing earlier losses. Nevertheless, accumulated losses continue to affect the value of APS's investment, which stood at approximately XCG 351,000.
The Audit Chamber reiterated its recommendation that APS provide clearer annual reporting on local investment performance, financial projections, risks, losses and future development plans.
Despite these concerns, the Chamber concluded that APS's financial statements provide a true and fair representation of its financial position.
APS closed 2025 with a positive result of XCG 27.1 million, compared to XCG 43.2 million in 2024, with the reduction largely attributable to increased pension obligations.
The improved coverage ratio also places the fund in a position to provide pension indexation for a second consecutive year.
The Audit Chamber's findings underscore that while APS remains financially sound overall, the performance, transparency and long-term viability of its local investments require continued attention to protect the pension assets entrusted to the fund.
