The Fiji National Provident Fund (FNPF) has reported a significant growth in its investment portfolio within government securities, reaching $4.6 billion this year. This increase can be attributed to heightened investments while facing minimal maturities. Over the past year, the Fund has invested $455 million in government bonds, contrasting sharply with maturities that totaled only $88.9 million.
The annual report for 2025 highlights the stability of bond yields, indicating a slight decrease in the 15-year bond rate to 4.15% from 4.17% last year, while the 20-year bond rate saw a rise to 5.00%, up from 4.85%. This stability is crucial, fostering consistent income and enhancing long-term financial planning for the Fund.
In addition to government securities, the quasi-government portfolio has expanded remarkably to $44.4 million as of June 30, up from just $5 million the previous year. This growth is mainly attributed to fresh investments in Fiji Development Bank (FDB) bonds, which amounted to $42.5 million, far surpassing the maturities of $3 million. The FNPF emphasized that the incorporation of high-yield quasi-government bonds into their portfolio is part of an ongoing strategy to diversify investments while adhering to a low-risk profile.
FNPF’s local term deposits reached $226.8 million as of June 30, a decrease from $246.3 million the previous year. This adjustment illustrates the Fund’s proactive liquidity management, responding tactically to fluctuations in market interest rates. The report states that the FNPF has strategically reallocated surplus cash into high-quality term deposit instruments with various counterparties to preserve capital and improve risk-adjusted returns.
Furthermore, the offshore term deposit and cash portfolio saw a decline, closing at $69.4 million, down from $80.8 million in the previous year. This shift is linked to a transition towards growth-oriented investments, although it was partially offset by newly approved funds for offshore investments and dividends from offshore equities. The FNPF continues to collaborate with the Reserve Bank of Fiji to potentially raise offshore investment limits.
By the end of June 2025, the Fund reported holding $992 million in cash and term deposits, an increase from $847 million in the same period last year. This growth underlines the FNPF’s commitment to sustaining the long-term savings and financial wellbeing of its members, reflecting a proactive and conservative investment approach in a fluctuating market.
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