[File Photo]

The Fiji National Provident Fund achieved investment growth despite the significant COVID-19 unemployment payout in the last financial year.

Chief Executive, Viliame Vodonaivalu says as a result, FNPF posted a 7.4 percent investment return.

Vodonaivalu says a main component of investment return is the government bond return which accounts for around 42% of the income.

“Predominantly component of investment return is the government bond return which accounts for around 42% of the income, although bond rate decreased during the year impacting currently long term heal as well as the result of high liquidity in the financial system. Income and equity investment also contributed positively to return during the year, from 2020 – our return on investment had been positive and begun to normalize as the economy had picked up post COVID-19.”

Vodonaivalu says as of June 30th, 2022, the investment portfolio stands at $8.6 billion, which is an overall growth of 93% from 2014 to 2022.

He says the diversification of the investment portfolio is the most successful strategy, investing in defensive and growth assets.

Vodonaivalu says the FNPF’s reserves stand at $1.7 billion as of June 30th, 2022.

He says the solvency and investment reserve protects the FNPF.