The Fiji National Provident
Fund (FNPF) is one of Fiji's success stories. "Since
its inception in 1966 it has not been tainted by
a breath of scandal either of mismanagement, corruption
or abuse of the funds it employs." The Fiji
Times. It is a social security savings scheme jointly
supported by the employees, employers and government.
There is no doubt that FNPF owes its success to
extremely prudent management and cautious investment
of funds. Nowadays it has more than 2.4 billion
FJD. The fund has continued to show excess levels
of long term funds available for investment, and
is thus now moving towards increasing their growth
assets by diversifying investments further into
domestic equity, developing property investment,
and investing surplus funds overseas.
 VISION
STATEMENT |
Our vision is that the people of Fiji will enjoy
peace of mind during their working life and in
retirement.
| MISSION
STATEMENT |
Our mission is to improve the financial securtiy
of our members and contribute to the development
of our members and contribute to their development
and the nation's development through sound management
and prudent investment.
| VALUES
STATEMENT |
Members can confidently trust in the impeccable
integrity of the FNPF. In all our dealings;
· We will be responsible stewards of the
funds with which we are entrusted.
· We will be good corporate citizens always
acting in the best interest of Fiji.
· We will do business in an ethical manner.
· We will provide quality service
| BRIEF HISTORY
OF THE COMPANY |
FNPF was set up in 1996 to provide financial
security for workers when they retire at the age
of 55. The government passed legislation requiring
all workers to be registered, so it became a national
scheme. The employers pay contributions monthly,
FNPF started with 5¢ per dollar from the
employer and 5¢ from the employee, then it
when up to 6%, 7%, and finally now it's 8%. That
money comes in every month and is kept in their
account until they retire when they are 55 years
old. Before, there was only the lump sum scheme,
but in 1974 the pension sheme was introduced,
where members can withdraw all their money, part
lump sum and part pension or a pension. Since
the early 80's fnpf has intrduced housing assistance,
funeral assistance, and education assistance preretirement.
But there is a reserving policy were, 1/3rd must
be left for retirement at the age of 55, they
can take up to two thirds for other benefits.
It also provides two other main contingencies
prior to retirement when the member is incapacitated
and is not able to work, and for the financial
support of survivors in the unfortunate event
of death. These are the three main 'pillar' benefits
of the FNPF. Over the years the Fund has evolved
into a comprehensive scheme that provides a number
of preretirement withdrawals to members for home
ownership, healthcare and education.
| ORGANISATIONAL
CHART |
Graphic
| OVERVIEW
OF OPERATIONS JUNE 2002 |
Table
| MEMBER
BENEFITS |
Interest Earned By Members
The board declared an annual interest rate of
6.4% (6.44% for 2001), credited to the members
accounts at June 30th 2002. This totalled $92.59
million an increase of $6.52 million, or 7.6%
over the previous year.
Special Death Benefit
The FNPF board in accordance with section 9 of
the FNPF Act, declared a maximum of $5,000 payable
for special death benefit. ($5000 for 2001). A
total amount of $3.25 million was paid out this
year, compared to $3.34 million last year, a decrease
of 2. 69 %.
Pension Scheme
The total number of pensioners as at 30th June
2002 was 5,571. Of the total number of members
eligible for pension this year, 22% opted for
pension compared with 26.36% last year. Annuities
purchased by these members totalled $14.72 million
compared with $14.5 million last year, an increase
of 1.52 %.
Housing Assistance Transfer Scheme
The total number of housing transfers paid out
for the year was 5,298 amounting to $25.05 million.
This includes transfers under the Village Housing
Scheme, amounting to $4.89 million. Since the
introduction of the Housing Assistance Scheme
in 1976, a total of 107,762 housing applications
totalling $454.63 million, have been approved
and paid out.
Village Housing Scheme
Since the commencement of the village housing
scheme in 1997, a total of 49,724 applications
amounting to $91.98 million have been approved
and paid out, this scheme also covers villages
in both Rabi and Rotuma.
Applications approved under this scheme still
continues to dominate the number of applications
approved for Housing assistance.
Share Investment Scheme - FNPF Nominee Company Ltd.
The FNPF Nominee Company Ltd is an entity that
is fully owned by FNPF, it was created to take
care of all member transactions processed under
the FNPF Share Investment Scheme, and includes
receiving money from the members account to pay
to a Broker for the shares purchased. The company
is also responsible for selling the shares when
the member individually requests.
The Share Investment Scheme became operational
in March 2002 the scheme provides the members
the choice to invest a portion of their FNPF savings
in purchasing shares in approved listed Fiji companies,
participating in the companies profits and growth
and still meet the long-term objective of financial
security in their retirement.
In this respect it enabled FNPF members to participate
in the Government's public offer for the sale
of its 15 million shares in Amalgamated Telecom
Holdings Ltd. (ATH). A total of 998 members participated
in the Float, acquiring 2,624,150 ordinary shares
in ATH for $2,781,599. With the announcement of
ATH's intention to a dividend payment of 4.2 cents
per share and ATH share price closing at $1.14
per share as at 30th of June 2002, the investment
has provided the members with a total return of
11.22%, comprising of 3.68% in dividend yield
and capital gain of 7.54%. As at 30th of June
2002 1067 members have utilised the scheme.
Table
| BRANCHES |
Lautoka Office
Drasa Avenue, Lautoka
Private Mail Bag, Lautoka
Tel: +679 666 1888
Fax: +679 666 5232
| INVESTMENT
AS TO JUNE 2002 |
Graphic
|
INVESTMENTS PORTFOLIO
The fund has continued to show excess levels of
long term funds available for investment and has
remained supportive of any strategic thrust that
would put these funds to work in an environment
where the currency and its foreign exchange rate
has been fairly stable, nad inflation is low. There
has not been any marked rise in interest rates with
the system awash in funds. Moreover, national monetary
policy is structured to encourage growth initiatives.
INVESTMENT REVENUE
Total investment income generated for the year
came to 102.39 million FJD compared to 144.36
million FJD for the previous year, which includes
realised capital gains of 70 million FJD from
the repatriation of offshore investments.
CAPITAL MARKETS
The fund was able to raise the level of its holdings
in gilt-edged government fixed interest securities
during the year from a low of 52% of portfolio in
the previous year to the current 55.5% which would
bring it back to within the benchmark range allocated
for this asset class. Of the amount invested, a
sum of 79.4 million comprised long term government
stock with yields in the range 5% - 6.5%.
In an earlier placement of Amalgamated Telecom
Holdings Ltd stock, the opportunity was taken
to diversify investments further into domestic
equity with the purchaseof an additional 7.2%,bringing
the total of shares held by the Fund to 58.2%.
Selected investment products coming on the market
are now available directly to the members of the
Fund as an option to their core savings through
the introduction of Share Investment Scheme.
GOVERNMENT SECURITIES
Table
Graphic
| FOREIGN
INVESTMENT |
Funds obtained under Exchange Control approval
for investment offshore remain at 164.4 FJD. As
the Fund would like to allocate 10% of its portfolio
in overseas investments, this level is some 34.25%
short of its benchmark.
In spite of the Australian share markets, being
reported as tracking lower since March 2002 in
concert with other major markets, investments
in individually managed portfolio remained sound.
Two portfolios managed by Colonial First State
Investment Managers (Aust) Ltd and ING Investment
Management Ltd respectively were able to post
an aggregate market value of AUD $110.3 million
from an investment allocation to date AUD $88.2
million.
Further diversification with existing trustee
constraints is being examined. The Fund is presently
looking into using global fund managers who pooled
funds, products for institutional investors.
PROPERTY INVESTMENT PORTFOLIO
Investment in property is considered by the FNPF
to be long term and generally of lower risk, with
its endurance being fundamental in its role as
an investment emdium. It also serves as a hedge
against gilt-edged securities and equities.
The fund currently owns 18 investment properties
nationwide comprising of a mixture of residential,
commercial and industrial holdings that were either
inherited, purchased and or developed as long
term investments.
These are listed as follows:
· Burns Philip Building, Suva
· Downtown Boulevard / Provident Plaza Complex,
Suva
· FNPF Place, Suva
· Harbour Centre Complex Suva
· Kwong Tiy Plaza, Suva
· Velop House, Suva
· Parshotam Building, Suva
· Robinson Complex, Suva
· Grantham Plaza, Suva
· Greig Street Carpark
· Nasese Residential Property, Suva
· Orica (Fiji) Limited Industrial Complex,
Lami
· Kamsoo Warehouse, Lami
· Cultural Care & Market Place, Pacific
Harbour
· Nadi Hotel, Nadi
· BP Homecentres Buildings, Lautoka
· Asco Property, Labasa
| HUMAN RESOURCE
DEVELOPMENT |
The past financial year has been both challenging
and exciting for the Fund´s Human Resource
Division despite the many difficulties it faced
in the rapidly changing work environment, during
this time.
Substantial progress on a Job Evaluation Exercise
has been achieved, in direct consultation with
the Fiji Bank & Finance Sector Employees Union.
Upon scheduled completion by the Consultant, Price
Waterhouse Coopers early in the new finance year,
all jobs will be individually evaluated according
to its content and merit and later assigned a
salary structure that is appropriate to a respective
grade and scale, that is to be determined by the
Fund.
The HR Policy Statement and Staff Procedures
Manual is being pursued as an ongoing priority
to improve individual staff performances and accountability,
with its development phase to be completed in
the financial year 2003. In addition, the HR Information
Management System is also been enhanced to facilitate
collection of data of both staff and job positions,
for future planning and development purposes.
With wider emphasis on productivity and efficiency,
the fund has maintained its focus on improved
training and development of its staff, to enable
them to adapt to the anticipated globally related
challenges of the future. A significant proportion
attended both in-house and external training programs,
which were conducted by both local and overseas
institution including ISSA, also witnessed the
opening of the new staff training and conferences
facility situated on Level 2, Provident Plaza
One.
The promotion and improvement of staff relations
has been further enhanced through regular monthly
staff meetings conducted by management, aimed
at both informing staff of recent organisational
developments and addressing their concerns.
In the new financial year, HR will be concentrating
on improving its planning processes to target its
manpower needs and productivity, as well as developing
its human resources in line with its strategic goals.
| INFORMATION
TECHNOLOGY |
FNPF is using Information Communication Technolgy
(ICT), to strivetowards providing better and faster
service to its members and customers. ICT was
used to reduce the timetken for paying out applications.
Electronic mail is also becoming a popular mode
of correspondance with members, employers and
other commercial clients of FNPF.
A modern Finance Information System (EPICOR
e-backoffice) and in-house cashier system were
also successfully impimplemented during the last
year, to assist with the improvement of operations
afficiency and enhanced customer service.
The division also successfully implented the
share investment scheme information system module,
that enables members to purchase shares from Approved
companies listedon SPSE.
The Fund has also earmarked improvements to
the current website www.fnpf.com.fj.
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