As a long-term investor, the Fiji National Provident Fund (FNPF) carries out risk analysis prior to the issuance of any loan.
This, according to FNPF general manager member services Alipate Waqairawai.
Speaking during the annual member forum in Suva last Tuesday, Mr Waqairawai said FNPF had a portfolio of commercial loans.
“Then, the relevant due diligence will have to be done in terms of the risk analysis. The FNPF is a long-term investor. When a member joins at six years old, he or she has until 55 to retire. So in terms of our investment horizon, we’ve got a very long-term horizon,” Mr Waqairawai said.
“So we ride with the highs and the lows of the economic fortunes. The key for us as a fund is to continue to invest because if we fail to invest in enough returns, we’ll have difficulties in paying the kind of returns or interest that our members expect of us.
“So it’s important for us to continue investing, but of course, when someone comes to us the relevant credit assessment and due diligence is done, we’ll look at the repayment capacity and the risks that are involved and the whole credit due diligence.”
He said things only moved forward if the organisation met certain criteria laid out in the investment portfolio statement.
“In terms of the guidelines we have, we will then ensure that somebody who loans from us also pays us a sufficient return to enable us to pay the kind of interest that our members expect of us, which is currently 6 per cent as of last financial year,” Mr Waqairawai said.
