FNPF members’ interest will not be affected

The Fiji National Provident Fund stressed that the write off or write down of $327M of the value of its assets is to adjust the books to ensure the fund's assets are showing their true and actual value.

In a statement, FNPF said the loss would be a monetary loss only if the asset was sold at the valuation amount.

The Fund said the loss is a reflection of the value at valuation date.

FNPF also said the write-down will not affect the interest paid to FNPF members.

It said this is only an adjustment to the value of the investment.

FNPF said the members' interest is calculated from actual income that the FNPF earns from all its investments.

It said in 2009, the Fund actually received an income of $225.6M from its investments, of which $113M was credited to members' accounts.

The Fund said this shows that the write-down did not affect the interest declared to members.

Meanwhile, according to the 2007 Annual Report of the Fund, FNPF Investments Limited is a fully owned subsidiary of FNPF.

It was incorporated on 1st July, 2004 as an investment vehicle for the Fund to invest in ventures previously restricted under the Trustees Act.

The total capital utilized for capital investments as at the end of the 2007 financial year was $134.95M.

Some subsidiary companies established through equity participation include Natadola Bay Resort Limited, FNPF Hotel Resorts Limited trading as Holiday Inn, Grand Pacific Hotel Limited and Penina Limited.