Fiji National Provident Fund investment portfolio in government securities grew to $4.6 billion this year – driven by increased investments and few maturities.
During the year, $455 million was invested in government bonds, while maturities totalled $88.9m.
Bond yields remained relatively stable – the 15-year bond rate was 4.15 per cent, slightly down from 4.17 per cent in the previous year; and the 20-year bond rate rose to 5.00 per cent, up from 4.85 per cent.
These were revealed in the Fund’s 2025 annual report, stating that stability supported consistent income and long-term planning.
The FNPF’s quasi-government portfolio, comprising government-guaranteed securities, also expanded to $44.4m as of June 30 this year, up from $5m the previous year. The Fund stated that increase was largely attributed to new investments in FDB bonds totalling $42.5m, which it added far exceeded maturities of $3.0m.
“The Fund also acquired several high-yield quasi-government bonds, enhancing portfolio diversification while maintaining a low-risk profile, consistent with the Fund’s fixed income strategy,” the FNPF stated in the report.
Also, as of June 30 this year, local term deposits totalled $226.8m, compared to $246.3m the previous year.
“This repositioning reflects proactive liquidity management and adjustments in response to market interest rate trends. During the fiscal year, the Fund continued to strategically deploy surplus cash into high-quality term deposits instruments across multiple counterparties to preserve capital while enhancing risk-adjusted returns,” the Fund stated.
“This tactical allocation provides stable income and supports the Fund’s conservative investment and liquidity strategy.”
It stated local term deposits remained a key component of its defensive asset allocation, contributing to the resilience and sustainability of members’ long-term savings.
The offshore term deposit and cash portfolio, on the other hand, closed the year $69.4m, down from $80.8m the previous year, reflecting a shift towards growth investments.
It stated the drop was partly offset by new funds approved by the Reserve Bank of Fiji (RBF) for offshore investments and dividends from offshore equities. It added the Fund continued to engage with the central bank to increase offshore investment limits.
As of June 2025, the Fund held $992m in cash and term deposits, up from $847m in June last year.
