SUNBIZ

FNPF To Explore Diverse Range To Enhance Returns

The Fiji National Provident Fund has acknowledged that normal investment approaches through traditional asset classes are no longer sufficient to generate high yields for its members. This is given the
28 Oct 2015 12:18
FNPF To Explore Diverse Range To Enhance Returns
Fiji National Provident Fund chief investment officer, Jaoji Koroi, during a recent press conference.

The Fiji National Provident Fund has acknowledged that normal investment approaches through traditional asset classes are no longer sufficient to generate high yields for its members.

This is given the dynamic environment the fund is operating in which is undergoing constant and rapid changes.

Fund chairman, Ajith Kodagoda, the fund has therefore adopted a more active investment approach.

He said the fund will continue to explore a diverse range of asset classes including infrastructure and property development to enhance returns.

Mr Kodagoda made this statement in the fund’s 2015 Annual Report released the past week.

“Given the fund’s size relative to the Fijian economy and its importance to members, there is a need to continually undertake research to identify critical issues that will affect our key stakeholders,” he said.

“With the long term global forecast featuring moderate growth and less stability, the FNPF continually reviews its strategies to overcome challenges and maximise opportunities for members.

“This will involve a holistic review of the Investment Policy Statement which guides the fund on how it undertakes investments, including greater focus on both risk and return objectives.”

Mr Kodagoda stressed Fiji’s ageing population continues to grow and members will seek secure retirement incomes from their funds.

“Therefore, the change is to develop and offer retirees new products,” he said.

Mr Kodagoda further highlighted that the fund expects the Reserve Bank of Fiji to maintain strong oversight given the introduction of the proposed Pension Savings Bill.

“The reform carried out thus far has structurally prepared the fund to manage competition in the pension business,” he said.

 

Performance and success

The Fiji National Provident Fund recorded a consolidated surplus of $373.2 million for the financial year ending June 30, 2015.

The positive results were driven by a net investment income of $302.7 million and net contribution of $131.7 million.

The investment income exceeded $300 million, a first for the Fund.

FNPF Chief Investment Officer, Jaoji Koroi, said: “The Fund should be commended for staying true to its commitment to members by recording remarkable results once again.”

Crucial to FNPF’s financial success have been the fund’s commitment to its smart investment strategies, operating a sustainable pension business and having a strong workforce to drive its core objectives.

 

Project management

Meanwhile, FNPF Projects has established a market-leading development and project management team.

The team provides with appropriate technical. Project management, services and support skills for the FNPF Properties section and FNPF subsidiaries.

The 2015 Annual Report highlighted that during the financial year ended June 30, 2015, 40 projects were managed.

Feedback:  rachnal@fijisun.com.fj

 

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