The Fiji National Provident Fund continues to see growth in sectors like telecommunications due to increased demand for data and technology, driven by COVID-19 induced social distancing solutions.
According to FNPF’s 2020 Annual Report, this has driven new investment opportunities and has been the source for a fair value gains of $80.2 million in FNPF’s investment in the information and communication sector which constitutes around 37% of their portfolio.
FNPF has 72.60% shares in Amalgamated Telecom Holdings.
ATH subsidiaries include Vodafone Fiji Limited, Telecom Fiji Limited, FINTEL, Fiji Directories Limited, ATH (Kiribati) Limited, Vodafone ATH Fiji Foundation, Datec and Telecom Vanuatu.
FNPF’s CEO, Jaoji Koroi says together with investments in health, transport, properties and the financial sector, the combined fair value gain realised totalled $116.8 million, helping to cushion the fair value loss experienced in the tourism sector, and resulting in a net fair value loss of $11.6 million.
Meanwhile, FNPF’s investment in the tourism sector which accounts for approximately 8% of the portfolio has been affected recording a fair value loss of $128.4 million.
Koroi says this decline is expected to continue until international borders open and even when they do, they anticipate that it will take some time for pre-pandemic levels to be achieved.
FNPF owns Sheraton Resort, Westin Resort, Denarau Golf Course and Development Land, Fiji Marriott Resort Momi Bay, the Intercontinental Fiji Golf Resort and Spa, Holiday Inn Suva, Yatule Beach Resort Limited, FNPF Hotel Resort and the Grand Pacific Hotel. They have been operating at a bare minimum.
Koroi adds that due to the impact of the pandemic on sectoral valuations, investments that were adversely impacted declared reduced dividend payouts. This resulted in FNPF recording a dividend income of $78.7 million, a decrease of 12.8%
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