FNPF local investment portfolio closed at $1.3 billion

(Left) FNPF's CEO Jaoji Koroi holds the North annual members forum in their Labasa office with his staff. Picture: LUKE RAWALAI

FIJI National Provident Fund’s local investment portfolio closed at $1.3 billion at the end of the financial year 2018.

This was revealed at the fund’s annual member forum held in Labasa last week.

It was highlighted that this was an increase of 26.4 per cent when compared with the 2017 portfolio of $1.0b.

The increase was driven by acquisition of the Mariott Denarau tourism assets which included the Sheraton Fiji Resort, the Westin Fiji Resort & Spa and the Denarau Golf & Racquet Club for about $157.8 million through the holding company Farleigh Ltd.

Members were also informed that this acquisition added to the existing tourism portfolio which included the InterContinental Fiji Golf Resort & Spa, Fiji Marriott Resort Momi Bay, Holiday Inn Suva, Grand Pacific Hotel and Natadola Championship Gold Club.

It was revealed that investment in Home Finance Company Bank, Fiji’s first locally owned bank, also increased through a dividend re-investment amounting to $5.1m.

The fund informed the members that in anticipation of International Financial Reporting Standards (IFRS) requirements and in compliance with the Investment Valuation Policy, all FNPF subsidiaries were revalued at fair value, noting a growth of $232.2m.

Members were enlightened that the increase of $32m from investments in shares listed on the South Pacific Stock Exchange aided as well.

According to the fund, in terms of dividend income, the local equities portfolio generated about $50.4m this year compared with $54.1m last year.

FNPF’s offshore portfolio grew by 60.9 per cent to $294.3 million this year compared with $182.9 million last year.

“This was the result of a capital injection of $33.9m into the Hastings Infrastructure Fund in Australia and acquisition of additional shares in the Bank of the South Pacific, PNG (Bank of the South Pacific) amounting to $60m,” mentioned the fund.

“The offshore dividend income nearly doubled to $16.4 million this year, mostly due to the additional dividend income received from BSP.”

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