The Fiji National Provident Fund (FNPF) held government bonds worth $3.4 billion as at June 30, 2020 FNPF stated in its 2020 annual report the issuing of bonds by Government was a universal practice.
“Like FNPF, many superannuation funds around the world invest in government bonds. Government bonds are a public sector security that are floated publicly,” the report stated.
“The fund’s investment in government bonds have fared well.
“The market movements did not wither bonds investment. It has helped defensive assets reign in during these times of market crisis.”
FNPF says the bonds investments “is an ideal investment for a long-term investor”.
“FNPF, as one of the few long-term investors in Fiji, has capitalised on this strategy and the returns, growth and sustainability of investment in bonds has been substantial.
“Generally, defensive assets like bonds help the investor sail through turbulent times when market vulnerabilities affect growth assets performance.
“Bond investment is indeed one of the most important strategic success stories for the fund.”
