The Fiji National Provident Fund’s (FNPF) investment in government bonds generated an income of $278 million in the 2025 financial year.
The Fund revealed this in a statement yesterday as it reaffirmed its significant investment in government bonds being a deliberate and prudent strategy aimed at protecting members’ retirement savings, delivering stable long-term returns, and supporting the resilience of Fiji’s financial system.
FNPF chief executive officer Viliame Vodonaivalu said government securities was one of the cornerstones of the Fund’s investment portfolio because of its low-risk profile and suitability for a long-term retirement fund.
As Fiji’s largest institutional investor, he said the Fund held a significant allocation to domestic government bonds and was a key participant in the local government securities market, and all in line with its Investment Policy Statement (IPS).
“Our foremost responsibility is to safeguard the retirement savings of our members. Government bonds provide stability, security, and predictable income, which are essential for meeting our long-term pension and withdrawal obligations,” Mr Vodonaivalu said.
He said this role was critical for members and the broader economy.
“FNPF’s scale allows us to play a stabilising role in Fiji’s capital markets. By being a consistent, long-term investor in government securities, we help maintain orderly yields and reduce volatility, which ultimately benefits the financial system and the economy as a whole.”
Mr Vodonaivalu said interest income earned from government bonds formed a key component of the Fund’s overall investment income and directly contributed to the annual credit interest rate declared to members. He said this reliable stream of income had helped offset volatility in other asset classes and supported their ability to declare annual interest for members.
“Therefore, bonds investments are part of the Fund’s resilient portfolio. By investing in government bonds, FNPF is able to earn competitive, risk-adjusted returns for members while also contributing to projects that strengthen Fiji’s economy.
“I would also like to reiterate the Fund, like all other institutional investors, participates in a competitive bidding process for government bonds. Securing these investments is not guaranteed, and there have been occasions where we have been unsuccessful, reflecting the highly competitive nature of the investment landscape.
“While bonds have long provided our members with a guaranteed return and historically been one of the highest income earners for the Fund, recent year’s performances reflect a strong shift in our investment landscape, with equities now surpassing bonds to lead our income generation.
“This diversification into higher-growth assets has helped us deliver stronger overall returns while continuing to safeguard members’ retirement savings.
“Income from government securities increased steadily from $247 million in FY22 to $278 million in FY25, even as yields moderated over the period. This reflects a well-balanced and disciplined investment approach.”
Mr Vodonaivalu said government bond investments supported critical national development priorities, including infrastructure, health, education and economic recovery initiatives.
