FNPF: uncertainty continues
October 24, 2011 Leave a comment
The FNPF is reporting that it recorded a 16 per cent increase in the net operating surplus for 2011, but the Annual Report for year is not on the FNPF website. What we’ve been told is very selective.
The report in the Fiji Times today is totally confusing but the bottom line seems to be that the FNPF investment has no hope of making money without sale of residential lots and that’s not likely to happen so long as we have a Government which has no respect for the rule of law.
FNPF CEO, Aisake Taito, has said that the FNPF now has $110 million invested off-shore. Give the destruction of our economy, this is a good move, but what it means is that the FNPF is admitting that returns in on any investment in Fiji are likely to be very low for some time.
With overseas share markets down, now is a good time to buy and we need to remember that another devaluation is on the cards. When this happens any overseas investments will keep their value.
And devaluation is a certainty – the only question is when. Our exports are not picking up. Sugar is still way down and could even get worse. We hear a lot about a mining boom, but it’s hard to know what the real truth is or when any income might start to flow.