Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1697753587444.pdf (Fiji)
Fiji National Provident Fund I Annual Report 2020 stable & stable & sustainable sustainable FIJI NATIONAL PROVIDENT FUND ANNUAL REPORT 2020 Corporate Statement Vision Securing your future Mission To understand our customers, offer quality services and ensure sustainable returns for meaningful retirement Values E T H I C Excellence We are committed to being the best and to deliver the best Teamwork We work effectively within and across teams to deliver results Humility We act in a manner respect, willingness and inclusion of others Integrity We resolve to do what is right for our customers and colleagues even when no one is looking Courage We challenge ourselves to think big, be decisive and persevere to make a difference Cover
About FNPF
About FNPF
Contents Highlights
Chief Executive’s Report 2 14 Being there for our stakeholders 20 Our Governance Our Investments Success Story Bonds – The backbone of our investments Our Members Our Digital Services Our People Our Corporate Diary Our Organisation Structure Our Financial Statements 23 30 36 38 44 46 48 49 50 Maria Rogoiruwai Senior Financial Accountant FNPF Suva, 30 years of service “FNPF has been a supportive employer, helping staff through for being empowered to do my work because it helps me strive
 2 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Highlights Member Fund $6.3b General Reserve $1.34b Investment Income Total Assets $424.4m compared to $7.9b Contributions Net Increase in Net Assets $591.4m compared to Interest Credited $320.4m compared $293.9m www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 3 Highlights Investment Portfolio Allocation
 Income by Portfolio 9% 11% 6% 12% 12% 5% 27% 29% 2019 44% 45% 2020 5% 11% 1% 21% 5% 10% 11% 5% 19% 2019 2019 55% 62% 2020 2020 Equities Properties Commercial Lending Equities Properties Commercial Lending Additional Contributions Net Contributions Contributions less Withdrawals The bar graphs show the increased uptake of additional contribution by employers and employees 1,626 104 4,515 219 2020 Employer Additional Employee Additional ($million) 1,200 1,000 400 200 0 *The mandated contribution of 10% (5% employers and 5% members) was implemented on 1st April 2020 from the previous 18% (10% employers and 8% members) 2017
2017 2020 Contributions Withdrawals Net Contributions 4 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Membership 447,635 Active* compulsory members 241,481 39% 61% Gender Active* voluntary members 6,004 43% 57% *Active members are those who contributed at 45% 55% Derived from members with positive balances Member balances by age Member Balances 16-24yrs 25-34yrs 35-44yrs 45-49yrs 50-54yrs Total $0 24,207 720
11,174 1 41 217
144 4 171 207 24
**This includes 21,436 of voluntary members Member Balances 45+ years Count 131,391 <$40,000 112,462 >$40,000 18,929 Active 31,017 Inactive 81,445 Active 15,846 Inactive 3,083 www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 5 Customers Served 553,072 Northern Customers Served by Divisions Western Central Pensioners Employers Active Employers 2 8 60 3 6 46 141 153 336 492 904 1005 769 718 752 842 717
752 842 717 561 7,000 4,000 2,000 1,000 0 2016 2017 2018 2020 198 23 *These employers are those that paid their employees’ Withdrawals $438.9m paid out during the year to members Small Account $1.4m $117.5m Housing
Housing Retirement $55.5m $3.9m $191.8m $35.2m $33.6m 6 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj FNPF Hosts ISSA Focal Point
The Focal Point ensures that social security and provident fund institutions broad knowledge, practical services and relevant platforms to assist in the improvement of its own schemes,
inclusive of Australia and New Zealand, The Focal Point will provide access to specialized knowledge and resources that will improve and transform social Point will coordinate events and communications on various issues such services, guidelines and the Centre for Excellence program and resource
and updates on social security schemes and is testament to the Fund’s growth of the Fund’s operation, direction and landscape, it brings the world of international experiences
 to FNPF and the benchmarking of quality practices to the ISSA President Professor Dr Joachim Breuer About the ISSA
across the world hosted by different social security www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 Pita Ravudi
 for the opportunities which has motivated and inspired me all
Fiji National Provident Fund I Annual Report 2020 Mr DAKSESH PATEL Mr MUKHTAR ALI Ms MAKERETA KONROTE Since January 2020 Since January 2020 Since January 2016 CHAIRMAN DIRECTOR DIRECTOR Mr Patel is the Chief Executive
Ms KALPANA LAL Since April 2019 DIRECTOR
Mr SANJAY KABA Since January 2020 DIRECTOR Mr JOEL ABRAHAM Since April 2019 DIRECTOR
Fiji National Provident Fund I Annual Report 2020 EXECUTIVE TEAM 1 3 4 5 6 8 2 7 1.
Chief Investment Ofﬁcer - Viliame Vodonaivalu 2.

Chief Finance Ofﬁcer - Pravinesh Singh 3.

Chief InformationTechnology Ofﬁcer - Rukshan Rajapaksha 4.

General Manager Business Transformation - Millie Low 5.

General Manager Human Resources - Ravinesh Krishna 6.

General Manager Governance and Risk - Uday Singh 7.

Chief Executive Ofﬁcer - Jaoji Koroi 8.
General Manager Member Services - Alipate Waqairawai 10 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Chairman’s Report essage from the Chairman Like all equivalent superannuation funds, FNPF has been challenged by the health and economic crisis, which started in early As an organisation, FNPF remains committed to what it stands for, which is built on our investment strategy, our FNPF’s members and the employers who a health contagion while reacting to the unfolding economic crisis affecting all sectors of most globally integrated
 its part in managing the health crisis Navigating risk and return in a once in a hundred year crisis There was an immediate impact on the movement of people and goods due to the
 were impacted, and while some sectors saw surges in demand, most sectors were on international tourism, border closures meant an immediate negative impact FNPF played an important role with the negative impact on the economy and our
 www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 11 substantial daily movements in price and How does one look at the value, and the subsequent impairment of assets, waves in crucial source markets for Fiji?
Will this virus be eliminated, or do we environment and adjust accordingly?
These are, and continue to be critical strategic and operational issues that the FNPF has grappled with in constrained investments, over investments for the FNPF’s investment strategy and portfolio is aligned around enhancing Fiji’s economic capability so that our member numbers FNPF continues to invest in its systems FNPF’s operations so the Fund can react effectively and adequately to meet
 invest in its staff and systems to enhance While there are some signs of recovery in global markets and national economies, FNPF appreciates the social, economic and commercial challenges Fiji will face going most business models will need to change to meet the new commercial realities, and workplaces and employment opportunities its focus on the social aspects of corporate resilience in Fiji as well as enhancing its environmental, social and governance
 strategies and activities are set out in this The Board’s most important challenge through the year The crucial challenge for the FNPF Board was to obtain information in constrained and volatile circumstances, so that FNPF was well informed and able to align its responses in a rapidly changing and FNPF’s response to the pandemic’s implication on Fiji’s economy and on our members’ livelihoods, was going to be The Fund was also cognisant of
be deployed to meet its investment growth Continuation of FNPF’s strategy focus on the fundamentals in these daily incoming tasks but also look at the emergence from this health and economic
the Fund explains its rationale, its decision making processes and outlines how FNPF is enhancing its environmental, social and FNPF remains committed to what it stands for, which is built on our investment strategy, our organisational values, the long term.
($million) 700 700 600 500 400 300 200 100 0 Figure 1: Investment income vs return on investment 2016 2017 2018 2019 2020 (%) 12 10 8 6 4 2 0 Investment Income Return on Investment 12 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Pensioners attending the FNPF Golden Pensioner Day so that the organisation remains agile and is accurately aware of the challenges for the Fund’s members, the employer These are challenging times and FNPF will play its part so that Fiji emerges from this crisis ready and willing to tackle the Acknowledgment
Acknowledgment for ten years ended his term in late as FNPF’s deputy chairperson for a decade
of FNPF and it is pleasing to see the FNPF’s improvement over the last decade in its investment framework, governance
organisation which has an important role Chairman www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 Pravin Chand Dayal FNPF Suva, 30 years of service
14 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Chief Executive’s Report Transforming our business has been the key driver in progressing our strategies to provide members with simple, accessible approach has seen
approach has seen improvements in our COVID-19 The Fijian economy is expected to contract closure of our borders, collapse in tourism revenue, declining remittances, low out enabling key stakeholders to access FNPF services anywhere, anytime and at a We also enhanced the member and employer portals and revamped our
 This is especially critical given the uncertainty and devastating effects of the be agile and adaptive to survive and meet members are unemployed, with a further
impact on the informal labour force has appear to stabilise, the full effects of Sadly, most of these workers have no our mandate, the Fund was again at the www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 15 forefront, providing for our affected
 phased schemes to provide assistance to The changing risk landscape required review of the Fund’s risk framework Apart from attending to the immediate
 embarked on the following during the year: Cleansing and digitising old member withdrawals records to ensure safe keeping and accessibility; Completion of the renovation of the Reconciliation and transfer of old Administration system; infrastructure project with the appointment of a key partner; project to enable the Fund to make
and operations are substantive but Challenges and Responses Liquidity and the subsequent national budget, assist employers meet their operational
 The Fund expects an average monthly
For withdrawals, the Fund paid out driven by retirement, migration and unemployment withdrawals that included Net contribution remained positive at
anticipates a negative net contribution next year as a result of reduced above the buffer limits and management
 The Fund actively manages its liquidity levels and funding to support our strategies and meet regulatory position using a number of risk appetite measures such as the Liquidity Buffer, safeguards against mass withdrawals or unforeseen circumstances and accordingly provides investment assets that are liquid or can be converted to Should there be additional stress on our equities available, which can be sold and
 agreed line of tradeable facility with the Operational and Administrative Responsiveness and subsequent lockdowns, the Fund was faced with the impending challenge of providing services in a period of to ensure the stability and continuity of our operating systems so that services Our member-centric approach has seen improvements in our system capacities,
 changer this Figure 2: during FY2020 ($million) (20) Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Withdrawal 16 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj FNPF’s transformation and investment in our digital space was at the forefront of intensive tasks of processing applications were automated with the introduction of processes have been automated to ensure
 These automations were initiated for the member administration system and The Fund’s digital portals, the employer and member portals, were the key receiving platforms for withdrawal
were provided to members to ensure that meant that our staff were expected to deliver and go beyond their normal call of and passion that they have displayed in
provide insight into behavioural patterns and trends which assists us with designing and developing products and services that Engaging with our members and managing expectations A fundamental challenge would be managing the expectations of our stakeholders and protecting the Fund’s Fund and it is expected to continue to deliver on its promises while at the same time managing the social security aspect The Fund is adamant that empowering members will help them make informed awareness through the dissemination of key information about the Fund, emphasising the importance of retirement Targeted communication has enabled us
 As the social media landscape continues to evolve, we will review the channels where we have a presence and explore Addressing Low Member Balance Similar to other superannuation funds, low member balance is an ongoing than 17,000 members’ now left with Although the preservation policy has
 Preserved Account, these members will still need to build their balance for a To assist members’ build their balance, the Fund will review the withdrawal encourage members to repay early withdrawals, and continue with our campaign for more members to sign up
changes will include structural changes continue to advocate on the protection and conservation of the Preserved has led to the doubling of this account Amidst this crisis, we salute those employers who have retained employer
 The same holds true for members, who have collectively deposited $1 million in Financial Results The Fund recorded a net increase in year, which was the basis of a declared
well known that both the net change in net assets and interest crediting rate have decreased in comparison to the last
We salute those employers who have retained employer contribution rates at 10%.
The same holds true for members, who have collectively deposited $1 million in employee additional contribution.

www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 17 Members line up outside the FNPF Headquarters to apply for the COVID-19 withdrawal scheme.

The queues spanned Ellery Street because of the physical distancing requirement which was closely monitored by authorities.
valuation gains in the Fund’s performance that changes in investment valuations would be a major source of volatility in resulted in further uncertainties in the The Fund revalued all investments in subsidiaries and properties to assess the As expected, our investments in the tourism sector, which accounts
 for ($000’s) 1,200 1,000 800 600 400 200 0 Figure 3: Uptake and value of employee and employer (No of employees/ employers) 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Jul 19 Aug 19 Sep 19 Oct 19 Nov 19 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 is expected to continue until international borders open and even when they do, we anticipate that it will take some time for Fortunately, increased demand for data
 induced social distancing solutions, has seen continued growth in sectors like investment opportunities and has been the in FNPF’s investment in the information and communications sector, which Together with investments in health, sector, the combined fair value gain
 cushion the fair value loss experienced in the tourism sector, and resulting in a net sectoral valuations, investments that were adversely impacted declared reduced
given us high returns during good times, they have been the cause of volatility as opposed to our investments in Fixed loans and advances, term deposits and Collectively, FNPF recorded interest 18 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj
 in net assets without taking into consideration the fair value changes, then the underlying position of FNPF has grown
informal sector; and We have a Board and leadership team with the right experience and skills to take us through the next chapter of opportunities FNPF invests with a view to ensure that a member joining today will expect his Our investment portfolio is diverse and positions us well to withstand the
to be led by our social security purpose While its important that we manage the challenges today, what we leave for our The challenges outlined in this report Understanding and embracing this is critical and will dictate how we set our meeting our members’ increasing needs
 now and ensuring that they retire with a We embark 2021 with a new corporate plan themed “Resetting and Repositioning in mind the key social and economic role While the Fund has endured well thus accelerated the need to address lower member balance, extending coverage to the informal sector and pursuing universal
 measures include but are not limited to: disaster withdrawals; We continue to build our people’s skills, capabilities now and for the future, to create an environment where our people
 The resilience of our staff have been the underlying basis of all our efforts and allowed us to successfully navigate a thank them and their families for their loyalty and dedication to their work through all the challenges we faced to our nine colleagues who have each
a testament of commitment and we thank them and their families for their contributions and perseverance over the We thank our members, employers, in us and assure you that as custodians of your funds, we work each day to grow the value of your investment in the Fund and to
 ensure that your future remains secured Chief Executive Figure 4: Interest Credited FY16-FY20 6.75% 1 .
3 5 3 $ 5.0% 9 .

3 9 2 $ ($million) 6.35% 9 .

6 9 2 $ 6.35% 6.25% 0 .

0 7 2 $ 5 .
9 3 2 $ 350 300 250 200 150 100 50 0 2016 2017 2018 2019 2020 www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 Rachel T. Tanaera “My passion to serve members has been inspired by the role FNPF plays in the lives of members.
The Fund has been my employer for three decades and I am blessed with this opportunity to serve and be part of efforts to achieve excellence in our services.” 20 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Being there for our stakeholders extraordinary and unique time for the pandemic, negatively impacted our economy and severely affected our without pay, reduced wages and/or The Fund responded by initiating relief packages for our key stakeholders – our
 Supporting our members the Fund activated withdrawal schemes to help affected members with their two phases, targeting different groups of
 Figure 5: COVID-19 Phases during FY2020 Phase 1 Phase 2 p u o r G t e g r a T
slowdown Scheme dates Total no of members Total paid
Total paid Target Group Scheme dates Total no of members Total paid www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 21 Supporting our employers Reduced employer and employee contribution To help employers in Fiji, the statutory FNPF employer contribution was halved from 10% to 5% effective from 1 April 2020.
This provided a $130 million relief to employers.

The employee contribution was also reduced from 8% to 5%, putting back about $80 million in members’ pockets.
The Government’s initiative to implement a 150% tax deduction for employers who contribute more than the 5%, is indicative of its support to also help members Relief package FNPF also implemented the following measures to assist employers with effect from 1 January 2020 to 30 June 2021: Waiver of penalties penalties – waiver of the $100 penalty per member for contribution payments received after the due date.
Time payment arrangements – upfront payment of employee’s contribution to be reduced to 10% and the balance of the debt to be repaid over 12 months.

 Compliance letters – conditional compliance letters were issued if employers were unable to resolve their FNPF payments due to the impact of COVID-19.

 Other third-party recoveries – reduction of third-party notices to 50% of the value of the invoice due and payable to employer for both existing and new notices.
Departure prohibition order (DPO) – employers on DPO are required to pay at least 20% of the debt prior to any travel.

Those employers on DPO and making a second travel request, are required to pay at least 40% of the debt prior to travel.
Supporting our pensioners Being mindful of the preventative measures against the pandemic, the Fund waived the renewal of pensioner Pensioners continued to receive their Additional Payment to Pensioners total of $4.3 million as a one-off COVID-19 The amount paid ranged from $300 to $900, equivalent of three pension payments up to a maximum of $900 or whichever is less.
The Fund was able to provide this one-off payment following amendments to the FNPF Act that allowed for the distribution of surplus in the Retirement Income Fund (RIF) to eligible pensioners.
The provision of this relief is attributed to the success of the FNPF Pension reform pensioners, evenduring a crisis.
The Coronavirus pandemic has forced members to explore other sources of income whereby many have now become self-sustainable & self- 22 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Implementation was in high demand and required swift turnaround solutions so that members could access this assistance despite challenges inclusive of imposed restrictions and agility saw the Fund overcome Crisis management Limited options available meant that the Fund had to utilise internal heavy reliance on existing processes, available data and insights, external
 learnings from this scheme will have a bearing on the management of similar Immediate Challenges Strategy Digital/online readiness Online and remote services Rebuilding member balances Review of scheme design & stakeholder collaboration Reinstate investment income Diversification and Rebalancing Managing Stakeholder Perception Strategic Communication Informal & Unstructured Employment Legislative changes & Stakeholder Collaboration Challenges Solutions Social distancing Online and remote services Payments Omni – payment modes Operational & Administrative Capacity Government Expectation & Governance Public Perception Liquidity Agility and Digital Innovation Preservation Rule & Stakeholder Collaboration Awareness, Education & Visibility Operational Efficiency & Cash - flow Management Existing measures Lessons learnt Way forward gaps, which have been converted to While the coronavirus was unexpected, unwelcomed and disruptive, it
 provided the opportunity for the Fund to resolve Collaboration with external parties Remote work testing Proper checks & balances Data driven insights Operational & Administrative Capacity Project Management Targeted digital offerings Improved & enhanced documentation Staff resilience Awareness, Education & Visibility www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 23 The International Social Security Association (ISSA) President, Professor Dr Joachim Breuer and Permanent Secretary for Economy, Ms Konrote unveil the plaque during the opening of the ISSA The Board provides strategic guidance and advice to Management to ensure the sound management of members’ funds.
FNPF Board The functions and powers of the Board are is entrusted with managing the affairs of the Fiji National Provident Fund in an provides strategic guidance and advice to management to ensure the sound The Board meets at least once a month or as required depending on decisions recommendations are provided for Board
 Board are conveyed to management and Board Composition and Membership term expired in accordance with the
USA respectively, Both directors have consistently and successfully attended
 Board Committees committees on Audit and Risk, Human
 of governance, investments, accounting,
before these are tabled to the Board for 24 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj (i) Board Investment Committee (BIC) (iii) Board Human Resources Committee (BHR)
(iv) Board Information and Technology Committee (BIT)
Board Fees Board member allowances are determined aligned to the Public Service Commission guidelines on allowances for board The fees are processed on a monthly and
 Table 1: Board Members BOARD BARC BIC BHR BIT No of meetings No of meetings No of meetings No of meetings No of meetings Held Attended Held Attended Held Attended Held Attended Held Attended
7 7 7 7 7 7 1 July 2019 to 31 January, 2020 1 2 2 1 1 1 4 1 1 4 4 4 1 January 2020 to 30 June, 2020 (New Board of Directors) 7 7 7 7 1 1 1 1 0 1 1 1 Other Board Committee Members 2 2 4 4 4 4 4 2 2 2 2 2 2 2 1 1 2 2 1 1 www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 Tiu Fasala FNPF Suva, 31 years of service “I feel blessed and grateful that I am still employed with the
 provided by the Fund to members.” 26 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Prudential supervision FNPF works with the Reserve Bank of oversight and reporting are done to strengthen governance and compliance to Three quarterly meetings were held with RBF on updates on the implementation of recommendations of
 The Fund ensures that key prudential standards and guidelines issued by RBF on pension fund governance, risk and asset
Compliance Management The Fund continually reviews its policies to ensure these are benchmarked to international standards and local The reviewed policies were: Additionally, in compliance with the indicators listed in the compliance management framework, and in light of the pandemic, the following were completed:
in response to the pandemic; management and staff, and the report was forwarded to the CEO; for withdrawal operations; on cash transactions reports and suspicious transactions reports; and
Energy Fiji Limited (EFL), CEO, Hasmukh Patel and FNPF CEO, Jaoji Koroi during an MOU signing encouraging information sharing between The risk management framework, policy register were independently reviewed and The external review provided an assurance to the Board that the Fund’s risk management processes have adequately policies are forward looking to ensure
 documented for monitoring and reporting The review also complemented our risk attention to improve the risk maturity of the organization from the current status of Risk Culture Awareness on the newly approved risk policies were conducted to ensure discussions on risks are ongoing and to Business Continuity Planning The Fund
 successfully conducted two simulation tests to assess system readiness and staff responsiveness to situations which may require operations connectivity of branches and agencies to the business resumption and data recovery www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 27 test in terms of its business continuity The second test was aligned to the ensure the FNPF
ensure the FNPF database and staff could This exercise involved connectivity to the situation, the Fund completed the following successfully: Continuity Plan;
environment, the Fund’s risk universe continues to change as emerging risks policies are policies are to ensure that to ensure that
1,000 s t n i a l p m o c f o .
o N 700 400 200 100 0 70 2016 2017 2018 2019 2020 Service related Figure 6: will pose challenges to the operations and Being mindful of this, the Fund has taken the initiative of reviewing its risk response plan and
response plan and procedures outlining the process and response plan for various Evacuation drills were conducted to ensure staff were aware of the response assessments were completed to identify Reviewing key risks associated with a major development project undertaken by the Fund were done with quarterly reports compiled and updates provided for Complaints Management
 capture complaints from registration to As the system matured and to meet business needs, the Fund enhanced the “myfnpfhub” system during the year to further streamline processing of
A resurgence in complaints, particularly associated with delay in processing, was year coinciding with the pandemic layered and relied on employers to upload application forms for their employees The time taken to process applications led The total number of complaints registered
28 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Internal Audit Control monitoring and data analytics were conducted to assess compliance and The Fund ensured that real time monitoring and audits were undertaken to A progressive approach through analytics was undertaken to automate compliance and control assessments on operational areas administered through the Fund’s Fraud Management
Fraud Management from reports received through the Whistleblower policy and the complaints management system including those involved false claims on unauthorised withdrawals and attempts to obtain Cases where fraud was proven, were The Fund has zero tolerance on fraud campaigns
campaigns are carried out to serve as a Quality Assessment An independent external assessment was completed on the Fund’s quality assurance and improvement program, which is part of the internal auditing standards required evaluating the extent of conformance of to undertake the quality assessment
function “generally conforms” to the Performance Standards including the Code FNPF staff don protective gear as they serve www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 Severo Moreyawa FNPF Nadi, 30 years of service
 opportunities for personal growth.” 30 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Our The Fund’s broad investment objective is This is subject to constraints aimed
 appropriate balance between risks and The Fund returned a strong performance assets performance, which was affected by million and unrealised investment loss The Fund was positioned underweight in growth assets and maintained an overweight
 defensive assets during the constricted economic environment and limited investment opportunities, the contingency asset allocation strategy earmarked for growth assets are invested
 The investment portfolio showed Net investment income before expenses projected a positive outlook with better As the market gathered strength in the
 and land acquisitions bought for further
www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 31
 causing halts to major economies and posing threat to the investment however, did not deter the Fund’s bonds and supporting our subsidiaries As part of the tourism industry investment renovation works at Sheraton Fiji Resort
 The local equities portfolio closed at The increase was driven by the: Additional acquisition of shares in
 Reinvestment of FNPF’s dividend million; and impacted by the pandemic and economic Offshore Equities
Fund in 2020 included: additional shares acquired in Bank sellers and in two separate tranches, returns from this investment was Additional investment of $4 million
investment until 2021; and The Fund’s investment in the Australian equities market suffered losses in the third quarter as the pandemic took its these losses were recovered in the fourth Other dividend reinvestments in Unit
Overall, the offshore dividend income million in our subsidiary, Health Care Partnership for the Lautoka and Ba
million last year, equating to a growth in of our existing investee companies in line with the Fund’s strategy to actively assess
general slowdown in the Fijian economy tourism portfolio, wholesale and retail, Furthermore, the FNPF undertakes fair value measurement on equity investments has been a downward revaluation of the FNPF hotel subsidiaries and investment in HFC Bank, which are two sectors heavily The growth was a result of new lending to various entities such as Fiji Airways
 credit loss model for booking of The same practice continued during the year, however due to the pandemic, loans in the aviation, hotel and tourism sectors
 Although there were no default in loans, as a precautionary measure the Fund assessed the impairments on an expected and forward looking basis as After COVID-19, our focus was Government bonds and supporting our subsidiaries through our commercial lending arm.
32 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Treasury The Fund continued to ensure short and Active treasury management became an essential management tool to support the Fund’s operations given the prevailing The challenge of declining market interest rates attributed to excess liquidity in the system, which was further exacerbated by contributing to increased member
 At the end of 2020, liquidity in the increase was due to RBF’s investment in
The local term deposits portfolio stood due to cash utilised for additional share acquisition, commercial loans and property Offshore Term Deposits and Cash FNPF’s offshore investments were held The foreign term deposits and cash closed
 The decrease is a result of the Fund’s investment in additional BSP share acquisition and RBF’s instructions to recall Properties with a total value of $440 million
is attributed to the acquisition of four prime vacant land earmarked for future development in line with investment million which includes land in Nausori and The development of the old Nadi Hotel property is
 expected to open for business next year and will be branded as the myFNPF Centre, Nadi, and will include Property occupancy and income have has been low but is expected to increase As a relief measure to assist FNPF tenants during the pandemic, the Fund issued rental concessions in the last quarter of Fixed Income
Fixed Income Government Securities the Fund increased from a balance of The increase in investment came directly unanticipated effects of the virus in Fiji borrowing to cater for additional resources
There were no new investments in Quasi Government Securities Housing Authority, Energy Fiji Limited,
Inside the re-developed Figure 7: Snapshot of the Equities Portfolio Local Offshore Listed Unlisted Externally managed www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 33 Fiji Government US Denominated Bonds
the funds in higher yielding equity FNPF Hotels Whilst our hotels performed well during prepared the Fund for what the latter hotels’ performance was tremendously impacted, leading to losses at the end of
Since the beginning of the pandemic and FNPF owned hotels have been making The hotels have been operating with low
opening of borders, hotel mangement With hotel businesses impacted, FNPF commenced the refurbishment of the The Westin Fiji Resort which is currently operating with 40 rooms is also planned for refurbishment in November 2020 and planned to open for business at the end of expected to undergo a major upgrade after consultancy team has commenced and
 a change in management during the year
implemented such as the closure of facilities that were not needed during the adjusting menus to match the local prices, encouraging staff to utilize their leave entitlements, pay cuts for management and staff, laying off workers, and sending
capitalizing on operational synergies with 34 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Hotel managements are also preparing and aligning their systems, processes and resources to meet the requirements of the FNPF is hopeful that when the borders momentum, even if at a
 slower pace than The FNPF Group comprises strong local and international brands such as: www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 Usha Sharma vision of securing members’ future – mine included.” 36 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj SUCCESS STORY Bonds – The backbone of our investments
 world challenged, raising questions on asset allocation strategies used by fund The pandemic grab on economic activities impacted as stock markets and property markets felt the brunt of this drastic However, the bonds market retained its
members should know, in order to appreciate the sources of return on What are Government bonds?
This is a debt security issued by a obligations and to generate investment superannuation funds around the world bonds are a public sector security that are
Accounting for bonds Bonds valuation on mark to market will attract volumes of unrealised capital gain and this remains untouched
 due to historical cost measurements applied in worth of gains not yet realised by the Key Features of a bond Fixed coupon for term of bond Higher returns than term deposit or current account Pays periodic interest payments Capital preservation guaranteed New Zealand Super Australian Super securities exposure in Super funds 368 FNPF 617 588 183 206 229 ($million) Figure 8:
 700 600 500 400 300 200 100 - Total Investment Income Income from Bonds www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 37 Figure 9: Process of investing in bonds The Fijian for invitation for The details of the term, coupon rate and closing date of tender is published and also outlined in the Prospectus for Upon closure of tender, the assesses all the bids and awards according to its rules Bidders are advised if their bid had been successful FNPF, along with other investors, submit bids outlining the yield at which it would like to purchase
 document is placed in a tender box at the Reserve Bank of Fiji, which acts as the Registrar of
FNPF’s intent to help develop secondary market trading in Fiji will Additionally, gains from secondary trading The sales process could include bonds secondary market overseas that have the
 required appetite and loading off to local investors who have preference in bonds FNPF’s bonds investment Over the last 10 years, the Fund’s investment portfolio on bonds have grown yielded an investment income totalling Earnings from our bonds investment from
 Bonds investments have undeniably been a substantial contributor towards the annual interest declared and distributed to
The bonds investments is an ideal the Fund had an investment portfolio of
The market movements did not wither assets reign in during these times of investors in Fiji, has capitalised on this strategy and the returns, growth and sustainability of
 investment in bonds has the investor sail through turbulent times when market vulnerabilities affect growth Bond investment is indeed one of the most important strategic success stories for the Figure 10: ($million) 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 - 54% 46% 48% 51% 52% 49% 59% 56% 43% 48% 57% 52% 52% 41% 57% 61% 43% 39% 2004 2006 2008 2010 2012 2014 2016 2018 2020 Bonds Portfolio Other Investment Portfolio 38 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Our The role and nature of serving our customers at FNPF continues to evolve given changing expectations and
remainder accessed our services via email
for village housing assistance was rolled Customers served
Customers served However this year unemployment
 Pension Services
As a consequence of social distancing, the Fund waived the submission of renewal This contributed to the reduction of www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 39 members purchasing any combination of FNPF’s pension/annuity products over the total number of members that came forward to make an option
Customers Served by Contact Types Face to Face Email Phone Figure 12: Pension Services 61.7% Pension Renewal 8.8% 6.8% 22.7% Pension Order Pension Ordeerrrr Payments Retirement Retireme Pension Pension Advisory Advisory Figure 11: 40 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Membership registered under the Voluntary Employers
Employers These are those employers that paid their employees’ contributions at least once Total Contribution
Contribution Debtors The balance of unpaid contributions was
 Suspense These are contributions collected but not distributed to members’ accounts because recorded in the suspense account in 2020 Unclaimed Deposits Account
Employers Portal Employers that registered for the Employer now submitting their monthly contribution Forty six civil litigation cases were under
 Member Account Transfers- Family Court Orders Transfers ordered by the Family Court processed between member accounts Recovery of Member contribution
Cases prosecuted were initiated based on the following offences under the FNPF Act 2011; workers; demand; and
the Fund continues to actively pursue civil recovery against those persons listed initiated against company directors and Discharge of Property
 Titles FNPF actively discharges property titles belonging to members who withdrew for housing assistance prior to November are ready for collection by members endorsement of the Registrar of Titles before they are released to members or www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 Darryn Howard Branch Manager West
what’s expected of you and that’s what being a steward of character, preparing you for the future and the Fund has prepared me for this.” Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Nirbhay Chand FNPF Suva, 32 years of service organisation.
FNPF has been an important part of Fijians lives and I am humbled to have contributed in some way to the future of many members and pensioners.
I hope to continue to do so, until I retire.” www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 43 Member Advocacy The Fund continued to engage with members under the Education and Advocacy programs, creating awareness on a retirement counselling event in Suva, before pandemic restrictions were Annual Member Forum As stipulated in the Fund’s legislation, a be held for FNPF members no earlier than
 held forums in Labasa, Ba, Lautoka and Media and Communications The year 2020 was the most challenging for the Fund’s communication efforts since The use of social media continued to be the most popular and engaging channel
 The Fund continued to improve its relationship with the media during the allowed the media to obtain the latest updates from the Chief Executive and
The Fund also participated in talkback FNPF’s quarterly member newsletters, distributed via email blast provided updated information on the latest developments as well as member platform proved effective during the year, keeping us in direct contact with The latter part of 2020 arrived with its own set of communication challenges
 physical distancing rules were enforced, pressuring the Fund and its stakeholders to correspond and conduct its business Faced with the challenge of having to reduce operating costs, the Fund heavily relied on online media to disseminate To complement this, the Fund conservatively used mainstream media, However, it was important that the Fund continued to keep its members informed with the latest information as the
A key learning from the year is the need to rebuild the Fund’s reputation and member economy and uncertainty that was brought Coupled with other learnings from communication strategies requiring a more proactive and targeted stakeholder engagement for 2021, addressing Facebook 41,597 Likes Twitter 952 Followers 44 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj (Front left) Fund Chief Information Technology Officer, Rukshan Rajapaksha assists in on-boarding members on the myFNPF mobile app to enable them to apply for
 FNPF continues to invest in our digital transformation to improve access, navigation and usability for all of our customers, driven by their needs and scheme, taking into account social robotic process automation
 pandemic, replacing manual efforts to process and pay out withdrawal withdrawal scheme, commencing with Prior to the introduction of the RPA, our
assistance, similar to the TC Winston Changes that have been brought about in processing members’ applications, reduction in error rate and improved Mobile Technology and member engagement The power of mobile technology was members
members who downloaded and installed the myFNPF app more than doubled about their account and eligibilities through the myFNPF app and they were also able to apply directly for the This was cost effective for members and they were able to monitor the progress of The myFNPF app is one of the most used local app compared to other mobile apps used in Fiji with a subscriber portfolio
www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 45 Employer portal employer engagement The Fund’s employer portal was enhanced came through the portal were integrated to the Fund’s administration system for employer and Fund document exchange platform for members to submit given the physical distancing restrictions
 resulted in improved processing accuracy As part of our digital strategy, the FNPF employer portal was also reviewed with to analyse and review the existing portal and an employer survey was commissioned to obtain feedback service The enhanced portal will improve user service facilities with shorter turnaround Website users Email subscribers page views recorded users Fast adoptive development and change response
 quick turnaround times, the Fund was expected to be agile and provide quick while still maintaining high level of development process had to adapt an agile software development methodology Automated System Validations for accuracy To mitigate risks that could affect data quality, the Fund implemented additional automations to validate data and improve exceptions reporting that was outside the Data mining and reporting on the visibility mining and data warehouse project
 outcomes of this would further enhance This has enabled good insights on data available in the Fund and it has also improved the turnaround time for key Infrastructure Availability The Fund’s capability to provide service continuity to its members was tested through planned disaster simulations, where improvements were made to our Online Portal users members employers MyFund (*567#) users myFNPF Mobile App users
members This was part of our continued efforts to build on data security and safeguarding employers The infrastructure project will progress in to the next year and will acquire further security measures safeguarding member pensioners members that in the case of a disaster, the Fund will be ready to continue its services with minimal interruption and with a safe 46 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj The Fund prides itself as an employer that develops, recognizes and retains cultured staff as well as providing a stable Our People Milestones
 embarked on key and enterprise activities to bring about process improvements and These include the: branches and agencies to synchronise their reporting lines and structure; household income and expenditure survey reports; highlighting areas which need further work;
PricewaterhouseCoopers; Successful implementation of the Fund’s withdrawal’s records, making it accessible; facility making staff accountable and compliant in terms of attendance and leave management; Continuation of training programmes via the Fund’s online learning platform
were Excel, communication essentials, essential customer service skills, project The Fund’s People The Fund had worked extensively propagating the stewardship culture whilst reinforcing the values and behaviour This has been the essence of the transformation journey that we embarked Table 2 reveals that the Fund has achieved some success in implementing corporate culture initiatives resulting in the following:
 Reduction in employee relations cases
www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 47 members during Phase 1 and Phase 2 of the COVID-19 withdrawal scheme; and Reduction in face-to-face learning due to the increased uptake of Percipio (76% usage) Our corporate culture initiatives will continue, to ensure it is sustained and reinforced as a norm over the next 3 years and beyond.
Looking Ahead Going forward, supporting operational Table 2: FNPF ITEM Staff Numbers Recruits Exits Labour Turn Over (temporary and permanent staff) Labour Turn Over (permanent staff only) Employment Relations Cases Years of Service (average) Age (average) Corporate Culture Survey Attendance Ratio (average) Training Activities (face-to-face) FY19 466 73 51 10.8% 5.5% 21 8 36 30% 98.1% 88 FY20 398 12 78 16.3% 2.5% 14 9 37 80% 91.3% 25 to these disruptions whilst developing innovative cross functional processes is essential for success and reduction in cost.
Several activities have been organized for staff and includes: “Leading through Crisis” training to ensure leaders are able to lead and guide the Fund past the COVID-19 outbreak and other future disruptions; Enhancing the HR dashboard to aid the Fund’s leaders in making informed decisions through readily available data and for resource and capacity planning; Financial literacy programs (includes business start-ups) to ensure better cash management for all staff; Counselling (psychosocial and clinical) to ensure services and advise are provided to staff to mitigate stress posed by the current crisis; Reinforcement of COVID-19 health protocols to ensure our people are able to attend to the needs of members and employers; and Health and Wellness Activities to further reinforce the Fund’s efforts in combating non-communicable diseases and other ailments.
48 Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj OUR CORPORATE DIARY 2020 Labasa, Ba, Lautoka, Nadi, Suva Forum 22nd - North Pensioners 30th Sheraton Fiji Resort, Nadi for the pensioners residing between Sigatoka to Rakraki december 18th january
january 1st 30th february 1st – Fund suspends processing fees for all early withdrawal assistance
 29th Session for members at FNPF Suva march 14th – Fund waives the pension renewal certicate process as part of its adherence to national helath april 2nd to working members in the Suva to 6th opened for members working in the Tourism Sector and those residing/ working in Lautoka and affected by lockdown restrictions, reduced hours, leave without pay, laid off / terminated
8th – Waiver of submissions of 14th opened for members whose homes may 12th
26th 29th 29th june 8th after the completion of refurbishment 9th – Phase 2 opens for members who
 10th – Phase 2 extended to those on leave without pay 30th 5%Interest Rate for FY 2020 july 26th - 29th: Financial literacy program 4th august 1st 23rd
25th - FNPF wins Best Reporting and october 1st – Fund moves to Electronic Payment mode for all members and 1st now an approved lender, recognized by november 13th Understanding to formalize partnership that will promote information sharing for compliance purposes that will www.myfnpf.com.fj Fiji National Provident Fund I Annual Report 2020 49 t i d u A l a n r e t n I r e g a n a M a m a
49 & / & & e
, n o i t u b i r t n o C r e g a n a M e c n a i l p m o C , , e s i r p r e t n E r e g a n a M t r o p p u S & & & Fiji National Provident Fund I Annual Report 2020 www.myfnpf.com.fj Our Financial Statements Board members’ report Statement by board members members of Fiji National Provident Fund
Statement of changes in reserves Statements of net assets available Notes to and forming part of the 51 – 53 54 55 – 58 59 60 61 62 63 64-65 66 67– 117 Fiji National Provident Fund Board Members’ Report For the year ended 30 June 2020 5511
 Board Members
Board Members
Operation of the Fund
 Principal Activities
 Going concern and impact of COVID-19
Operating Results Reserves
Reserves Fiji National Provident Fund Board Members’ Report (continued) For the year ended 30 June 2020 5522 Bad and Doubtful debts
Events Subsequent to the Balance Date
statements.
Fiji National Provident Fund Board Members’ Report (continued) For the year ended 30 June 2020 Events Subsequent to the Balance Date (continued) 5533
Basis of preparation
 Related party transactions
 Other circumstances
Other circumstances Unusual transactions
 ments.
date.
Board members’ interest
Fiji National Provident Fund Statement by Board Members For the year ended 30 June 2020 5544
5555 Independent Auditor’s Report To the Members of Fiji National Provident Fund
 Opinion
Basis for Opinion Auditor’s Responsibilities for the Audit of the
 Financial Statements Independence
Independence
Emphasis of Matter
PricewaterhouseCoopers, Level 8, Civic Tower, 272 Victolria Parade, Suva, Fiji.
GPO Box 200, Suva, Fiji.

T: (679)3313955 / 3315199, F: (679)3300947 PricewaterhouseCoopers is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a seperate legal entity.
5566 Other Information
Responsibilities of Board Members’ and Management for the Financial Statements
Auditor’s Responsibilities for the Audit of the Financial Statements
5577
Report on Other Legal and Regulatory Requirements
5588 Restriction on Use
PricewaterhouseCoopers Chartered Accountants Wiliki Takiveikata Partner 16 October 2020 Suva, Fiji Fiji National Provident Fund Income statement For the year ended 30 June 2020 Income
Total income Less:
Net income Expenses
Total expenses Net increase in net assets available for allocation Other comprehensive income 5599 Notes 2020 $000 2019 $000 424,445 635,527
369,794 618,719 49,354 50,336 320,440 568,383 Net increase in net assets available for allocation 320,440 568,383 Total 320,440 568,383
320,440 568,383 Fiji National Provident Fund As at 30 June 2020 6600 Assets Cash and cash equivalents Receivables Investments Term deposits
 Other assets Total assets Liabilities Notes 2020 $000 2019 $000
7,932,325 7,463,785
46,360 21,384 7,885,965 7,442,401 Comprising: Reserves Total reserves Total Funds
6,545,918 6,107,338 1,340,047 1,335,063 7,885,965 7,442,401 Chairperson Director Fiji National Provident Fund As at 30 June 2020 6611
 Balance at 1 July Members Total contribution
Notes 2020 $000 2019 $000 6,107,338 5,460,079 6,107,338 5,459,721 591,422 651,961 6,545,918 6,107,338
6,545,918 6,107,338 statements.
6622 Fiji National Provident Fund Statement of changes in reserves As at 30 June 2020 Balance at 30 June 2018 Balance at 1 July 2018 Balance at 30 June 2019
Balance at 30 June 2020 Investment Solvency Reserve $000 516,578 506,369 629,668 reserve $000 Total $000 636,078 1,152,656 636,078 1,142,447 705,395 1,335,063 583,189 756,858 1,340,047
 statements.
, 9 1 7 8 1 6 4 9 7 9 6 3 , 9 9 6 2 , 4 3 1 3 , 3 2 0 6 2 , 6 5 9 6 2 , 7 9 9 9 8 5 , 4 0 7 9 3 3 , 9 1 0 2 0 0 0 $ 7 2 5 5 3 6 , e m o c n I t n e m e r i t e R l a t o T ) ” F B D S “ ( d n u F ) ” F I R “ ( d n u F F P N F 0 2 0 2 0 0 0 $ 9 1 0 2 0 0 0 $ 0 2 0 2 0 0 0 $ 9 1 0 2 0 0 0 $ 0 2 0 2 0 0 0 $ 9 1 0 2 0 0 0 $ 0 2 0 2 0 0 0 $
 , 5 4 4 4 2 4 3 0 7 2 , 1 4 1 3 , 6 3 0 6 2 , 6 5 9 6 2 , 8 8 7 6 0 6 , 8 4 3 4 9 3 ,
e m o c n i l a t o T :
6 3 3 0 5 , 4 5 3 9 4 , - - 3 8 3 8 6 5 , 0 4 4 0 2 3 , 9 9 6 2 , 4 3 1 3 , 3 8 3 8 6 5 , 0 4 4 0 2 3 , 9 9 6 2 , 4 3 1 3 , 3 4 1 3 9 0 7 5 2 , 9 0 7 5 2 , 0 4 3 2 2 0 0 5 , 4 1 0 9 4 , 6 1 6 6 2 ,
5 7 9 9 3 5 , 0 9 6 0 9 2 , 6 1 6 6 2 , 5 7 9 9 3 5 , 0 9 6 0 9 2 ,
: o t d e t a c o l l A l a t o T 6633 6644
, 7 5 0 5 4 2 4 , , 7 0 7 6 6 9 3 , , 3 3 1 1 7 6 , 3 2 2 6 5 5 , 4 9 3 6 5 , 4 3 0 5 3 , 7 8 8 5 9 6 5 , , 3 7 7 2 1 , 1 2 5 0 7 1 9 0 1 5 9 , 8 4 4 9 , 8 7 1 8 , 4 6 3 6 0 , 7 5 4 3 1 4 5 , , 7 0 8 9 2 0 0 , , 3 3 1 3 6 6 , 3 2 2 8 1 4 , 5 7 8 1 4 , 5 1 7 7 1 , 7 9 3 2 3 2 5 ,
1 2 3 8 8 2 , 1 9 6 1 2 0 , - - - -
, 1 2 3 8 8 2 1 9 6 1 2 0 , F N P F R e t i r e m e n t I n c o m e F u n d T o t a l ( “ R I F ” ) F u n d ( “ S D B F ” ) $ 0 0 0 2 0 2 0 $ 0 0 0 2 0 1 9 $ 0 0 0 2 0 2 0 $ 0 0 0 2 0 1 9 $ 0 0 0 2 0 2 0 $ 0 0 0 2 0 1 9 $ 0 0 0 2 0 2 0 $ 0 0 0 2 0 1 9 , 7 4 4 2 4 0 1 , , 2
 1 3 8 4 , 7 4 6 3 7 8 5 , 6655 , 1 0 4 2 4 4 7 , , 5 6 9 5 8 8 7 , 3 5 0 3 4 , 5 6 3 9 4 , 5 5 6 2 2 3 , 6 7 1 1 3 3 , 9 1 0 2 0 0 0 $ 0 2 0 2 0 0 0 $ 9 1 0 2 0 0 0 $ , 8 3 3 7 0 1 6 , , 8 1 9 5 4 5 6 , , 3 6 0 5 3 3 1 , , 7 7 4 0 0 4 3 1 , 6 1 9 2 , 7 3 1 0 4 , 0 2 0 2 0 0 0 $ 7 3 1 2 , 8 2 2 7 4 ,
8 2 2 7 4 , 0 9 4 3 4 2 , 9 3 8 0 5 2 , 5 6 1 9 7 , 7 3 3 8 8 , , 2 3 9 0 6 8 5 , , 2 4 9 2 9 2 6 , , 1 6 7 5 1 2 1 , , 2 8 4 2 1 2 1 , , 3 9 6 6 7 0 7 , , 4 2 4 5 0 5 7 , s e v r e s e R
) ” F B D S “ ( d n u F ) ” F I R “ ( $ 0 2 0 2 0 0 0 $ 9 1 0 2 0 0 0 $ 0 2 0 2 0 0 0 $
6666 Fiji National Provident Fund For the year ended 30 June 2020
Notes 2020 $000 2019 $000
Fiji National Provident Fund For the year ended 30 June 2020 1 General information 6677
2.1 Statement of compliance
Going concern and impact of COVID-19
6688 Fiji National Provident Fund For the year ended 30 June 2020 Going concern and impact of COVID-19 (continued)
2.2 Changes in accounting policies and disclosures
2.3 Foreign currency translation
noted.
rate at the reporting date.
2.4 Property, plant and equipment
Fiji National Provident Fund For the year ended 30 June 2020
 2.5 Intangible assets 6699
2.6 Investment properties
7700 Fiji National Provident Fund For the year ended 30 June 2020 2.8 Financial instruments Financial assets
Business Model Assessment
7711 Fiji National Provident Fund For the year ended 30 June 2020
 2.8 Financial instruments (continued) Business Model Assessment (continued)
i.
Financial assets at FVTPL
ii.
Financial assets at amortised cost
7722 Fiji National Provident Fund
 For the year ended 30 June 2020 2.8 Financial instruments (continued)
Measurement of ECLs
Fiji National Provident Fund For the year ended 30 June 2020 2.8 Financial instruments (continued) 7733
7733
7744 Fiji National Provident Fund For the year ended 30 June 2020 2.8 Financial instruments (continued)
Offsetting
2.9 Receivables
2.10 Cash and cash equivalents
 2.11 Leases
2.11 Leases
Fiji National Provident Fund For the year ended 30 June 2020 2.11 Leases (continued) 7755
7755
Short-term leases and leases of low-value assets
2.12 Employee entitlements
7766 Fiji National Provident Fund For the year ended 30 June 2020 2.12 Employee entitlements (continued)
2.13 Other payables and accruals 2.14 Income tax
2.14 Income tax 2.15 Provisions
2.15 Provisions
2.17 Contributions
Fiji National Provident Fund For the year ended 30 June 2020
 2.18 Income recognition 7777
third party.
Income
rate method.
2.20 Reserves
2.20 Reserves
2.21 Subsidiaries and Associates
7788 Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management 3.1 Financial risk factors
(a) Market risk
(i) Foreign exchange risk
Cash and cash equivalents AUD Foreign equities AUD USD AUD USD 2020 $000 2019 $000
Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (a) Market risk (continued) (i) Foreign exchange risk (continued) Sensitivity Analysis 7799
Assets 30 June 2020 USD AUD 30 June 2019 USD AUD Liabilities 30 June 2020 USD 30 June 2019 USD Impact on net assets $000’s
$000’s 44,893 64,234 $000’s (44,883) (47,530) (ii) Price risk
8800 Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (a) Market risk (continued) Sensitivity Analysis (continued) (ii) Price risk (continued) Index Carrying Amount Impact on net change in assets 2020 $000 2020 $000 2019 $000
(b) Credit risk
basis.
Term deposits
2020 $000 43,798 2019 $000 2,338
Amounts arising from Expected Credit Loss (ECL) Fiji National Provident Fund
 For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Amounts arising from Expected Credit Loss (ECL) (continued) 8811
8822 Fiji National Provident Fund
 For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued)
Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Concentration of credit exposure 8833 Term deposits
2020 $000 % 3 2019 $000 %
2020 2019
% 3 3 3 % Mining
Transport and storage Total 2020 $000 1,041,959 % 0 3 0 0 0 0 0 100 2019 $000
966,366 % 3 0 0 0 0 100 8844 Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) Sensitivity Analysis
Increase $000 Decrease $000
2020 2019 12-month ECL Lifetime ECL not credit- Lifetime ECL credit- Credit grade Standard Gross carrying amount Credit-impaired assets Total credit impaired assets Stage 1 $000 652,087 647,459 impaired Stage 2 $000 185,834 178,986 Gross exposure 17,399 impaired Stage 3 $000 204,038 62,892 Total $000 1,041,959
1,041,959 889,337 Total $000 966,366 (112,282) 854,084 Impairment allowance Carrying amount Fair value of collateral held (1,372) 16,027 26,580 Loss allowance at 1 July
 Loss allowance at 30 June 12-month ECL Stage 1 $000 5,144 3,879 Lifetime ECL not credit- impaired Stage 2 $000 104,943 Lifetime ECL credit- impaired Stage 3 $000 2,195
147,311 1,432 Total $000 112,282 152,622 Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (b) Credit risk (continued) 8855 12-month ECL Stage 1 $000 745,487
 603,530 Lifetime ECL Lifetime ECL credit- impaired Stage 3 $000 204,039 not credit- impaired Stage 2 $000 16,840 Total $000 966,366 234,391 204,038 1,041,959 Gross carrying amounts at 1 July
Gross carrying amounts at 30 June
8866 Fiji National Provident Fund
 For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (c) Liquidity risk
Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Financial risk factors (continued) (c) Liquidity risk (continued) 8877 Financial liabilities
On demand Less than or equal to 3 months 3 – 12 months 1 to 5 years Total Greater than 5 years $000 $000 $000 $000 $000 $000 6,292,942 250,839 2,137 Total member liabilities 502,099 106,671 172,783 934,569 4,829,796 6,545,918 20,969 20,568 502,099 125,382 173,241 938,316 4,848,417 6,587,455 Financial Assets
 Term deposits interest income On demand Less than or equal to 3 months 3 – 12 months 1 to 5 years Total Greater than 5 years $000 $000 $000 $000 $000 $000
298,828 383,000 3,363,983 124,014 2,221,834 1,041,959 298,828 150,155 420,518 1,086,144 5,477,973 7,433,618 2,201,859 226,681 298,828 221,012 617,496 2,105,264 6,619,558 9,862,158 8888 Fiji National Provident Fund For the year ended 30 June 2020 3.
Financial risk management (continued) 3.1 Capital risk management
4.
Critical accounting estimates and judgments
(b) Impairment of property, plant and equipment
Fiji National Provident Fund For the year ended 30 June 2020 4.
Critical accounting estimates and judgments (continued) COVID-19 Pandemic 8899
Equity investments
Equity investments
Investment properties
Expected credit losses
9900 Fiji National Provident Fund
 For the year ended 30 June 2020 5.
Fair value estimation
Fiji National Provident Fund For the year ended 30 June 2020 5.
Fair value estimation (continued) 9911
Carrying amount Fair value Amortised Cost Total Level 1 Level 2 Level 3 Total Fair value $000 $000 $000 $000 $000 $000 $000 Balance as at 30 June 2020
Balance as at 30 June 2019
9922 Fiji National Provident Fund For the year ended 30 June 2020 5.
Fair value estimation (continued) Equity investments
Investment properties 2020 $000 2019 $000
Valuation inputs and relationships to fair value Type Valuation technique
inputs Inter-relationship between and fair value measurement
Sensitivity analysis
Other equity investments Investment properties Increase $000
Decrease $000 Fiji National Provident Fund For the year ended 30 June 2020 9933 6.
Income (a).
Interest income Term deposits (b).
Dividend 7.
Net change in value of investments (a).
Fair value changes - equity investments Net fair value (losses)/gains (b).
Net foreign exchange gain/(loss) Net foreign exchange gain/(loss) 8.
Other income Note 2020 $000 2019 $000
323,638 298,750 78,747 90,438 (11,628) 806 1,396 198,510 (13,251) 2,096 9944 Fiji National Provident Fund For the year ended 30 June 2020 9.
General administration expenses
9(a).
Other operating and general expenses Training Stationery and printing Water rates
Note 2020 $000 26,737 30 7,303 2019 $000 24,303 6,915 Fiji National Provident Fund
 For the year ended 30 June 2020 9955 10.
Term deposits 11.
Government securities 2020 $000 382,748 383,000 3,363,983 3,362,100
3,363,983 2019 $000 429,785 431,000 3,011,498 3,008,547 3,011,498 statements.
2020 $000 124,014 123,882 124,014 2019 $000 197,355 196,120 197,335
197,335
9966 Fiji National Provident Fund
 For the year ended 30 June 2020 13.
Loans and advances Note 2020 $000 2019 $000
1,041,959 966,366 1,041,959 966,366
Natadola Bay
Natadola Bay Resort Pte Limited (NBRL)
Momi Bay Resort Limited (MBRL)
Fiji National Provident Fund For the year ended 30 June 2020 13.
Loans and advances (continued) 9977 Collectively Assessed Provisions Individually Assessed Provisions
Loans to related parties $000 Customer term loans Staff loans Total $000 $000 $000 - - 142,539 - - 9,979
9,979 104 104 - 104 104 152,518 107,168 5,010 104 112,282 142,539 9,979 104 152,622
14.
Equity investments 14(a).
Traded equities Note 2020 $000 2019 $000 152,622 112,282 2,221,834 1,939,782 705,950 603,008
705,950 603,008 as at reporting date.
9988 Fiji National Provident Fund For the year ended 30 June 2020 14.
Equity investments (continued) (b).
Other equity investments Name Principal activities Valuer Place of busi- ness % Owner- ship 2020 Fair value 2019 Fair value $000 $000 Subsidiaries
Management Assessment
 Management Assessment Management Assessment
Associates Management Assessment Shipping Other
Management Assessment Management Assessment Management Assessment Management Assessment Management Assessment 1,515,884 1,336,774
Type Valuation technique inputs and fair value measurement
Fiji National Provident Fund
 For the year ended 30 June 2020 14.
Equity investments (continued) b.
Other equity investments (continued) Valuation Process 9999
operations.
15.
Investment properties Properties at fair value Work in progress 2020 $000 2019 $000
429,069 385,868 438,107 385,868 1100000 Fiji National Provident Fund For the year ended 30 June 2020 15.
Investment properties (continued)
The outbreak of the Novel Coronavirus (COVID-19), declared by the World Health Organization as a “Global Pandemic” on 11 March Market activities have being impacted in many sectors.
As at the valuation date, the valuer considers that it can attach less weight to previous market evidence for comparison purposes, to inform opinions of value.

The current response to COVID-19 meant that it is faced with an unprecedented set of circumstances on which to base a judgement.

The valuation are therefore reported on the basis of ‘material valuation uncertainty’ as per IVS 104 (Bases of Value) under the International Valuation Standards 2017.
Consequently, less certainty – and a higher degree of caution – should be attached to the valuation than would normally be the case.

Given the unknown future impact that COVID-19 might have on the real estate market, it is recommend that Fund keep the valuation of the subject properties under frequent review.
Valuation technique Inter-relationship between key unobservable inputs and fair value measurement
Market based management
Market approach: Fiji National Provident Fund
 For the year ended 30 June 2020 16.
Cash and cash equivalents 1100011 2020 $000 2019 $000 313,081 311,466 460,681 459,455
459,455
17.
Intangible assets Software at cost Balance at the end of the year Amortisation and impairment Balance at the end of the year At the beginning of the year At the end of the year 2020 $000 - 20,407 12,011 10,254 8,396 2019 $000
 20,243 9,989 9,171 10,254 1100022
A d d i t i o n s C o s t 1 8 .
P r o p e r t y , $ 0 0 0 L a n d $ 0 0 0 L a n d v a l u a t i o n $ , 8 7 7 1 , 8 6 6 0 , 1 3 0 3 , 1 7 5 3 $ 0 0 0 F N P F 4 6 4 7 8 1 2 3 6 9 1 8 7 2 5 3 - - 1 3 9 , 1 1 6 3 6 - , 1 1 4 6 1
 $ 0 0 0 R I F v e h i c l e s M o t o r $ 0 0 0 F u r n i t u r e & F N P F R I F P r o g r e s s W o r k i n $ 0 0 0 $ 0 0 0 $ 0 0 0 $ 0 0 0 T o t a l
Fiji National Provident Fund For the year ended 30 June 2020 1100033 19.
Other receivables Net contribution receivable Net other receivables Note 2020 $000 3,748 39,323 2019 $000
39,323 2019 $000 5,480 44,314 43,071 49,794 $000 $000
$000 $000 Balance at 1 July 2018 Balance as at 30 June 2019 Balance as at 30 June 2020 20.
Investment income receivable Balance as at 1 July 2018
Balance as at 30 June 2019 Balance as at 30 June 2020 59,807 Contributions receivable $000 10,640 14,375 2020 $000 139,499 62,604 Other $000 2,170 2,361 2019 $000 118,399 Interest receivable $000 Rent receivable $000 750 744 121 297 Note 1100044 Fiji National Provident Fund
 For the year ended 30 June 2020 21.
Other payables and accruals Deposits Note 2020 $000 36,024 2019 $000 19,984
to members at reporting date.
22.
Employee entitlements 23.
Leases (a) Right-of-use assets Additions (b) Lease liabilities Total undiscounted lease
 liabilities at 30 June Lease liabilities at 30 June Property leases (included in investment properties and right of use assets) Amount recognized in income statement Amount recognized in the statements 2020 $000 1,034 1,034 2020 $000 249
249 20,568 9,302 587 131 2019 $000 1,157 1,157 2019 $000 236 261 243 318 165 Fiji National Provident Fund For the year ended 30 June 2020 Represented by:
Represented by: 1100055 Note 2020 $000 7,885,965 7,885,965 2019 $000 7,442,401 7,442,401
7,442,401
2020 $000 49,365 2019 $000 43,053
43,053
(b).
Retirement income fund reserve Note 2020 $000 2019 $000 331,176
331,176 322,655
(c).
General reserve
Notes 2020 $000
1,212,482 2019 $000 1,215,761 1100066 Fiji National Provident Fund For the year ended 30 June 2020
2020 Total 2019
2020 2019 Notes SDBF $000 RIF $000 FNPF $000 All funds $000 11,627 11,627 SDBF $000 11,609 11,609 - 579,795 591,422 11,244 RIF $000 - 11,150 579,795 FNPF $000 640,352 602,666 All funds $000 651,961 640,352 663,111 SDBF RIF FNPF $000 $000 $000 All funds $000
All funds $000
2020 $000 430,524 2019 $000 347,036
347,036
Fiji National
Fiji National Provident Fund For the year ended 30 June 2020 1100077
2020 $000 2019 $000 29,340 24,357
29,340 24,357 25.
Transfers between funds under the FNPF Act 2011
(a) FNPF
FNPF reserve Notes 2020 $000 2019 $000 6,292,942
5,860,932 6,292,942 1,212,482 5,860,932 1,215,761 Net assets at end of year 7,505,424 7,076,693 1100088 Fiji National Provident Fund
 For the year ended 30 June 2020 (a) FNPF (continued)
Notes 2020 $000 2019 $000 431,985 635,310
635,310
2020 $000 2019 $000 6,292,942 5,860,932
members.
(b) RIF Net assets Movement in liability 2020 $000 331,176 2019 $000 322,655
250,839 243,490
interest.
Fiji National Provident Fund For the year ended 30 June 2020 (b) RIF (continued) 1100099
(c) SDBF
2020 $000 49,365 2019 $000 43,053
2020 $000 2,137 2019 $000 2,196 11100 Fiji National Provident Fund For the year ended 30 June 2020 27.
Change in net assets available for allocation Change in net assets available for allocation Allocated to: (a) Reconciliation of cash and cash equivalents 2020 $000 320,440 2019 $000 568,383
(320,440) (568,383)
Note 2020 $000 298,828 2019 $000 460,681
29.
Commitments and contingent liabilities (a) Commitments 2020 $000 66,393 2019 $000 10,908
(b) Contingent liabilities 2020 $000 79,334 2019 $000 79,334
(c) Operating lease revenue
55,698 38,601 Fiji National Provident Fund For the year ended 30 June 2020 30.
Related parties (a) Board members 11111
(b) Transactions and balances with related parties Directors*
2020 $000 77 2019 $000 46
Key management personnel
2020 $000 2019 $000
$000
11122 Fiji National Provident Fund For the year ended 30 June 2020 30.
Related parties (continued) (b) Transactions and balances with related parties (continued)
(i) Transactions with related parties during the year Interest income
Rental income
Rental income Dividend income from related parties
 (ii) Balances with related parties at the year end Dividend receivable from related parties
 2020 $000 36,927 2020 $000 2,314 26,788 2020 $000 28,288 2019 $000
$000 - - 34,864 2019 $000 2,075 42,306 2019 $000 42,166 Fiji National Provident Fund For the year ended 30 June 2020 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) 11133 Interest receivable from related parties Other receivable from related parties Loans provided by the Fund to related parties
Natadola Bay Resort Pte Limited (NBRL) 2020 $000
715,116 572,577 2019 $000 30 639,917 532,749
532,749
11144 Fiji National Provident Fund
 For the year ended 30 June 2020 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) Transactions with other related parties (continued) Natadola Bay Resort Pte Limited (NBRL) (continued)
Vodafone Fiji Pte Limited (VFL)
11155 Fiji National Provident Fund For the year ended 30 June 2020 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) Transactions with other related parties (continued) Barton Pte Limited
Momi Bay Resort Pte Limited
Farleigh Pte Limited
11166 Fiji National Provident Fund For the year ended 30 June 2020 30.
Related parties (continued) (b) Transactions and balances with related parties (continued) Transactions with other related parties (continued) FNPF Hotel Resorts Pte Limited (FHRL)
Dubbo Pte Limited
31.
Events Subsequent to the Balance Date
Fiji National Provident Fund For the year ended 30 June 2020 31.
Events Subsequent to the Balance Date (continued) 11177
32.
Auditors
11188 11199
1122200