FNPF records net loss for 2009

The Fiji National Provident Fund has recorded a net loss of $181.15 million in 2009.

This was revealed in a summary of the FNPF's 2009 Annual Report for the financial year ending 20th June 2009, which stated that the loss is a direct result of the impairment to the Natadola and Momi project in which the Fund had to write-down $320 million, $302 million for Natadola and $18 million for Momi as announced a month ago.

The FNPF stated that although the write down is not a cash transaction, the provision is taken into the Profit and Loss which led to the overall loss.

The FNPF said that the impairment in terms of the write down of $320 million in Momi and Natadola was due to the fact that the Fund invested significantly in both properties, and the valuations for the properties based on prevailing market conditions at the time of the valuation, recorded that their market value was $302 million, less than what the Fund had invested in both.

The FNPF has assured that members’ funds are definitely safe.

The FNPF stated that if they had not written-down these investments, the net surplus would have been $146.49 million for 2009 compared to $123 million for 2008, which would have been an improvement of 19%.

The FNPF said despite the write-down the Fund did well as its investment portfolio grew by 2.8% while the total fund membership increased by 11,594.

Contribution also increased by $6.81 million from the previous year.